THE BRITISH economy will grow by 2.4 per cent this year, the International Monetary Fund (IMF) is expected to say today, giving the UK a bigger upgrade than any other economy.
The strong forecast is up from the previous forecast from October of 1.9 per cent growth and reflects the scale of the recovery.
The major upgrade marks a stark turnaround for the IMF.
Just nine months ago its chief economist cut the UK’s forecast, arguing the chancellor was “playing with fire” by trying to raise taxes and cut spending.
However, the influential body now expects the UK’s economy to grow by 2.2 per cent next year, 0.2 percentage points above the earlier predictions.
Easier credit conditions and soaring confidence are behind the improvement, the IMF is expected to say. It follows on from a series of strong business surveys that bode well for the British recovery.
By contrast the Eurozone is only expected to grow by one per cent this year, barely changed from the previous 0.9 per cent prediction.
The sharp upturn has not yet reached France – its 0.9 per cent forecast is unchanged, while Italy’s 0.6 per cent outlook is actually worse than the 0.7 per cent forecast it was given three months ago.
The US economy is expected to expand by 2.8 per cent this year and three per cent in 2015.
The global economy is expected to grow by 3.7 per cent this year and 3.9 per cent in 2015.