IMF slashes UK growth forecasts

The IMF has reduced UK growth forecasts by 0.3 percentage points for this year and next, leaving predicted growth at just 0.7 per cent this year and 1.5 per cent in 2014. Only the UK's growth forecast was downgraded for next year.

Europe's 2013 GDP outlook was reduced to -0.3 per cent from -0.2 cent while the US was also expected to perform more poorly with 1.9 per cent growth expected this year rather than two per cent.