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Economic predictions 'optimistic' Economic predictions 'optimistic'
(about 8 hours later)
Doubt has been cast on the chancellor's forecasts for UK economic recovery.Doubt has been cast on the chancellor's forecasts for UK economic recovery.
The International Monetary Fund (IMF)has warned that Alistair Darling's hopes of an upturn later this year may be overly "optimistic".The International Monetary Fund (IMF)has warned that Alistair Darling's hopes of an upturn later this year may be overly "optimistic".
In his pre-budget report, Mr Darling said he expected output would "start to recover" in the third quarter.In his pre-budget report, Mr Darling said he expected output would "start to recover" in the third quarter.
Barry Potter, a director of the IMF, has told BBC Scotland the forecast is "towards the more optimistic end of the projections". Barry Potter, a director of the IMF, said the chancellor's forecast is "towards the more optimistic end of the projections".
In an interview for BBC Radio Scotland's The Business programme, Mr Potter also said it was "very difficult to know how effective" UK efforts to kickstart the economy would be. Mr Potter also said it was "very difficult to know how effective" UK efforts to kickstart the economy would be.
But speaking to BBC Radio Scotland, Mr Darling said: "I set out my forecasts in November and I am not changing them.
"If you look at what I forecast at the end of November, it was broadly in line with what the Bank of England was forecasting.
"If we and other countries act together, then there is every reason to believe that we can come through this."
A 2.5% VAT cut, a speeded up programme of public works and a huge injection of cash into British banks are among the key measures announced by the chancellor so far.A 2.5% VAT cut, a speeded up programme of public works and a huge injection of cash into British banks are among the key measures announced by the chancellor so far.
Mr Darling will appear live on a specially extended edition of The Business at 0900 GMT on Sunday 4 January.
The 90-minute programme will also feature interviews with Scotland's First Minister Alex Salmond, Scottish Enterprise chief executive Jack Perry and Brian Quinn, former deputy governor at the Bank of England.