The International Monetary Fund (IMF) has upgraded the UK's economic growth forecast for 2024 to 0.7% from 0.5%, citing effective actions by UK authorities. However, the IMF remains critical of certain UK economic policies, warning against further tax cuts due to a challenging fiscal outlook. The IMF highlighted a £30 billion budget gap that the UK Treasury needs to address to stabilize its debt burden. Additionally, the IMF recommended that the Bank of England (BoE) consider easing rates by 50-75 basis points in 2024. The IMF also projected a 1.5% GDP growth for the UK in 2025 and noted that public sector net debt excluding the BoE is expected to reach about 97% of GDP by 2028/29. IMF Managing Director Kristalina Georgieva mentioned that UK monetary policy is reaching an inflection point and emphasized the potential for structural reforms and AI to boost the UK's economic growth in the medium term. The IMF also noted that the UK economy is heading for a 'soft landing' and criticized Chancellor Jeremy Hunt's decision to cut National Insurance in recent fiscal events.
BREAKING: The International Monetary Fund (IMF) has said the UK economy is heading for a "soft landing" but reiterated its message to Jeremy Hunt that he should not have cut national insurance at the last two fiscal events https://t.co/CdzpWOcqgH
IMF tells UK not to cut taxes as it warns over £30bn fiscal hole https://t.co/NP1PqmH8tO
Delighted to welcome @KGeorgieva and the IMF to London today for their annual health check on the UK economy. They’re upgraded our growth forecasts and said the UK is approaching a soft landing from global economic difficulties - showing the UK economy really is turning a… https://t.co/TC1MuTiMgi
Watch Business Live with Ian King as The International Monetary Fund says the UK economy is heading for a "soft landing" Latest business news 👉 https://t.co/rXKaNflg0R https://t.co/U1t7O6HzHQ
The UK economy is "set for a soft landing" as it grows faster than previously expected following recession, says the International Monetary Fund (IMF). https://t.co/weFni95Zfg 📺 Sky 501, Virgin 602, Freeview 233 and YouTube https://t.co/EfKcYPsC9E
The IMF warns that the UK Treasury needs to find £30 billion of savings to stabilize its debt burden, undercutting Rishi Sunak’s ambition to reduce taxes before the next election https://t.co/lwAEE4syKk
The IMF warns that the UK Treasury needs to find £30 billion of savings to stabilize its debt burden, undercutting Rishi Sunak’s ambition to reduce taxes before the next election https://t.co/Dp509VkkwP
NEW IMF upgrades UK economic forecast and says it's heading for a "soft landing". BUT it also warns of a £30bn black hole in the public finances and says @Jeremy_Hunt shouldn't have cut National Insurance in the last two fiscal events. More👇 https://t.co/kjhgBzdUX0
Georgieva, IMF's Managing Director, recommends Bank of England to contemplate easing rates in the upcoming phase.
IMF'S MANAGING DIRECTOR GEORGIEVA: IN THE MEDIUM TERM WE SEE FURTHER IMPLEMENTATION OF STRUCTURAL REFORMS AND AI BOOSTING UK ECONOMY GROWTH POTENTIAL.
IMF'S MANAGING DIRECTOR GEORGIEVA: UK MONETARY POLICY IS REACHING AN INFLECTION POINT.
IMF'S MANAGING DIRECTOR GEORGIEVA: THE NEXT PHASE IS FOR BOE IS TO EASE RATES.
IMF'S MANAGING DIRECTOR GEORGIEVA: WE ASSESS RISKS TO THE UK OUTLOOK AS BALANCED.
IMF'S MANAGING DIRECTOR GEORGIEVA: ACTIONS BY UK AUTHORITIES ON THE ECONOMY ARE PAYING OFF.
IMF: UK IS NOT ON COURSE TO STABILISE PUBLIC SECTOR NET DEBT AS A SHARE OF GDP.
IMF: UK PRIMARY BALANCE NEEDS TO AVERAGE AROUND 1% POINT OF GDP HIGHER TO STABILISE DEBT IN 2029/30.
💥IMF bumps up UK GDP forecast for this year to +0.7% But... it's critical of UK economic policy. Warns against further tax cuts given tough fiscal outlook and IMF says it wouldn't have cut NICs as Hunt did. Says spending plans don't reflect future pressures.
IMF: BOE SHOULD CUT RATES BY 50-75 BASIS POINTS IN 2024.
IMF warns Hunt against UK tax cuts as it predicts public debt surge via @FT https://t.co/7XpU3HMyH5
IMF: UK PUBLIC SECTOR NET DEBT EX-BOE SET TO HIT ABOUT 97% OF GDP IN 2028/29.
IMF SEES UK GDP +1.5% IN 2025 (APRIL VIEW +1.5%).
IMF: UK TREASURY HAS £30 BILLION BUDGET GAP TO FILL.
IMF warns Hunt against UK tax cuts as it predicts public debt surge https://t.co/ZyDcCNQFxI
IMF UPGRADES UK GROWTH FORECAST TO 0.7% THIS YEAR FROM 0.5%.