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IMF: UK Economy to be Fastest Growing in 2016

The International Monetary Fund has reneged on their pre-referendum warning, stating the UK will now be the top performing G7 country in 2016.

IMF Revises Post-Brexit Projections - UK Fastest Growing G7 Economy 2016

The International Monetary Fund has reneged on their pre-referendum warning, stating the UK will now be the top performing G7 country in 2016.

Admitting that their predictions prior to the Brexit vote in June had been overly pessimistic, the IMF revealed that their latest projections estimate growth of 1.8% for the UK in 2016 – outperforming Germany, the US, France, Canada, Italy and Japan.


In the organisation’s half-yearly World Economic Outlook (WEO), the IMF reported that the UK’s economic prospects have improved for 2016, saying that Britain will now comfortably avoid a recession in 2016.


This latest forecast has been revised up from the IMF’s most recent report in July, where the organisation projected growth of 1.7% for the UK in 2016.
Whilst the IMF anticipates stronger than expected growth for 2016, they anticipate that the growth will begin to steady in 2017.


Following Brexit, a rate of 1.3% was anticipated – the highest of any country in Europe. Now, the IMF anticipates growth of 1.1%, placing the UK just behind France and Germany (1.2%) and ahead of Italy (1%).


Commenting on the WEO, the IMF’s economic counsellor, Maury Obstfeld, said:


‘In the United Kingdom, slower growth is expected since the referendum as uncertainty in the aftermath of the Brexit vote weighs on firm’s investment and hiring decisions and consumers’ purchases of durable goods and housing.’


The more positive outlook of the IMF in the wake of Brexit follows the announcement from prime minister Theresa May that the Brexit process will begin in March 2017, when the UK will submit Article 50 to the European Union.

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