Strong growth predicted by IMF

IMF expects economic growth to hit 6.8%The International Monetary Fund (IMF) expects the UK economy to see growth of 6.8% this year. Although this is slightly lower than the 7% predicted in July, it would still represent the fastest growth in the G7. The IMF also believes the UK will see growth of 5% in 2022, a 0.2% increase on its previous forecast. The IMF said the global economy is set to grow 5.9% this year and 4.9% next year – with these 0.1 percentage points lower than previously suggested. The IMF expects most advanced economies to return their pre-pandemic growth trends next year as supply chain issues ease, and to exceed it by about 1% in 2024, while merging and developing economies (excluding China) could fall back and remain 5.5% below their pre-pandemic forecast by 2024. Despite outlining the levels of growth it expects, the IMF’s latest World Economic Outlook warns that there is “great uncertainty” about economic performance, pointing to the potential impact of inflation.