Chancellor and Prime Minister insist UK is on the right track

THE International Monetary Fund (IMF) downgraded the UK’s gross domestic product (GDP) in its latest World Economic Outlook update.

This would contract by 0.6 per cent instead of growing by 0.3 per cent as predicted last October. The UK was also expected to perform worse than other high-income economies, including Russia, as the cost of living continued to affect households, the IMF said.

Nevertheless the IMF update added that it believed the UK was on the right track despite high energy prices, increased mortgage costs and raised taxes, together with worker shortages.

The IMF report on January 31 arrived three years on from the day that the UK left the European Union although it forbore to name Brexit as an element in the country’s failure to perform as well as others.

Only days before the IMF’s pronouncement, Chancellor Jeremy Hunt Jeremy Hunt had disparaged gloomy interpretations of the UK economy, taking on the “declinists” whom he described as “permanently pessimistic” regarding Britain’s future.

Responding to the IMF update, Hunt also maintained that the UK was strong and had outperformed many forecasts in 2022.

Prime Minister Rishi Sunak’s official spokesman pointed out that the UK was predicted to grow faster than Germany and Japan in coming years while adding that the IMF itself had said the that the UK was on the right track.

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