London United Kingdom (Commonwealth Union)_With Britain’s GDP estimated to grow by a marginal 0.4 percent in 2023 albeit good news for the country which has faced galloping inflation and unbearably high energy costs over the last year, the International Monetary Fund (IMF) said Britain will not recede into a recession this year. Commending the British Government on the measures taken to stabilize the economy and fight inflation, the IMF said its original estimation of a contraction of 0.3 percent is no longer in the books.
While the outlook is subdued, the IMF’s statement mentioned Prime Minister Rishi Sunak’s astute measures as part of the reason for the new growth projection, which could also put Britain ahead of its counterparts in the European region, including Germany. The earlier forecast of a 0.3 percent contraction was the weakest for any major economy. According to Reuters, the IMF believes the prudent fiscal decisions and responsible steps taken in recent months have seen fighting inflation become a priority.
With global supply chains normalizing and energy costs getting back to an even keel helping Britain’s positive outlook greatly, the country’s fiscal prudence has been deemed admirable. Adding to the improved outlook was the unexpected resilience of demand, faster pay growth, higher government spending, and improved business confidence. However, there is a need to infuse more investment and lighten the tax burden although the IMF cautions that while these may seem in the natural order of things, it should only be done when it becomes affordable.
