The IMF has upgraded its growth forecasts for the UK in its Wold Economic Outlook. The UK is expected to grow by 1.4 per cent in 2013 an increase from the previous projection of 0.9 per cent.
In 2015 the IMF expects the UK will grow by 1.9 per cent an increase from the previous forecast of 0.4 percentage points. The forecast is double the ones made in April when the IMF were extremely critical of UK economic policy.
Commenting on the new projections the IMF said:
In the UK, recent data have shown welcome signs of an improving economy, consistent with increasing consumer and business confidence, but output remains well below its pre-crisis-peak.
The fund expects growth to return to the UK's long-term trend of two to 2.5 per cent. The new projections will come as good news for the chancellor.
A Treasury spokesman said:
The IMF has confirmed that the UK economy is turning a corner, by revising up its forecast for growth over the next two years by more than for any other G7 economy.
But risks to the global economy remain high, and the recovery cannot be taken for granted. That is why the government will not let up in implementing its economic plan, which has already cut the deficit by a third, kept interest rates near record lows and created over a million and a quarter jobs.