Boost for Rishi Sunak as major IMF report predicts huge growth for UK economy – & will be faster than its EU rivals
JEREMY Hunt tells the naysayers to shake it off as Britain will grow faster than all our big European neighbours – despite Brexit.
The Chancellor insists the UK “is on course for a soft landing” after bungling economists underestimate our economy again.
The IMF have upgraded UK growth for this year and forecast we will grow faster than any other large European country over the next six years .
Hunt said today “it is time to shake off some of the unjustified pessimism about our prospects.”
The Chancellor backed the findings of a new IMF report which forecasts growth has improved for the rest of the year – hitting out at “unjustified pessimism”.
Mr Hunt welcomed the report from the Washington-based organisation which says the UK economy will now grow by 0.7 per cent – up from 0.5 per cent.
The report states that with “growth recovering faster than expected” as inflation could hit the Bank of England’s two per cent target tomorrow.
Mr Hunt said: “Today’s report clearly shows that independent international economists agree that the UK economy has turned a corner and is on course for a soft landing.”
Forecasts have revealed that the UK economy is expected to grow faster than France, Germany, Italy and Japan over the next six years.
The welcome news comes on the back of last week’s GDP figures that showed the economy grew by 0.6 per cent in the first three months of the year.
The boost meant the country came out of a technical recession aiding Prime Minister Rishi Sunak’s attempts to head off a disastrous election result later in the year.
He used the release of the IMF report to launch a thinly-veiled attack on shadow Chancellor Rachel Reeves who said the government was “gaslighting” the public.
She challenged the government in a recent speech over whether the economy had turned a corner amid cost-of living pressures.
He said: “The IMF have upgraded our growth for this year and forecast we will grow faster than any other large European country over the next six years – so it is time to shake off some of the unjustified pessimism about our prospects.”
The report comes ahead of testing few months for the Bank of England who are under pressure to cut interest rates to help home owners.
They say that the “timing and pace” of rate cuts must be carefully balanced against “premature and delayed” reductions, the report revealed.
The IMF say inflation could go up in the coming months before hitting a “durable return” to the two per cent target by early 2025.
They also say that keeping the bank rate constant – currently at 5.25 per cent – could “stall or even reverse the recovery”.
The IMF also say that it could lead to an “undershooting” of the 2 per cent inflation target.
They say Bank chiefs should reduce interest rates between 0.5 per cent and 0.75 per cent this year.
The IMF hit out at the two National Insurance cuts which Jeremy Hunt pressed ahead with at the last two fiscal events – given their “significant cost”.
Darren Jones, Shadow Treasury Minister, said: “Millions of people are paying more on their mortgages, prices are still rising in the shops and the UK economy has been rocked by a mini-budget that left working families worse off.
“That is this government’s record and the only way to turn the page and end the Tory chaos is with a Labour government.
“After all of the economic chaos and decline the Tories have unleashed on the country, they now expect the country to say thank you.
“Labour’s first steps will deliver economic stability so we can grow our economy in all areas of the country and keep taxes, inflation and mortgages as low as possible.”