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| IMF lowers UK growth forecast for 2013 again | IMF lowers UK growth forecast for 2013 again |
| (about 4 hours later) | |
| The International Monetary Fund's twice-yearly look at the world economy has lowered its forecasts for most developed economies, including the UK. | The International Monetary Fund's twice-yearly look at the world economy has lowered its forecasts for most developed economies, including the UK. |
| The IMF said world growth would now be 3.3% for the year, down from 3.5% forecast six months ago. | The IMF said world growth would now be 3.3% for the year, down from 3.5% forecast six months ago. |
| For the UK, it is forecasting growth of just 0.7%, after saying a month ago that the country's economy could expect 1% growth. | For the UK, it is forecasting growth of just 0.7%, after saying a month ago that the country's economy could expect 1% growth. |
| The figure is slightly above the 0.6% growth forecast in last month's Budget. | The figure is slightly above the 0.6% growth forecast in last month's Budget. |
| That figure came from the independent Office for Budget Responsibility. | That figure came from the independent Office for Budget Responsibility. |
| The IMF's World Economic Outlook report also cut its forecast for the eurozone, from 1.2% to 0.3%, with Germany, the strongest economy, expected to grow by 0.6%, but France on course to shrink by 0.1%. | The IMF's World Economic Outlook report also cut its forecast for the eurozone, from 1.2% to 0.3%, with Germany, the strongest economy, expected to grow by 0.6%, but France on course to shrink by 0.1%. |
| Slowing down | Slowing down |
| The IMF said the UK was "progressing slowly". | The IMF said the UK was "progressing slowly". |
| It suggested the Chancellor, George Osborne, should consider reining back his austerity plan. | It suggested the Chancellor, George Osborne, should consider reining back his austerity plan. |
| The IMF's report said: "In the United Kingdom, the recovery is progressing slowly, notably in the context of weak external demand and ongoing fiscal consolidation." | The IMF's report said: "In the United Kingdom, the recovery is progressing slowly, notably in the context of weak external demand and ongoing fiscal consolidation." |
| It said economic weakness and a lack of willingness to lend were holding back the private sector. | It said economic weakness and a lack of willingness to lend were holding back the private sector. |
| The IMF rarely gives direct advice, preferring to give discreet prompts. | The IMF rarely gives direct advice, preferring to give discreet prompts. |
| It said about the UK: "Greater near-term flexibility in the path of fiscal adjustment should be considered in the light of lacklustre private demand." | It said about the UK: "Greater near-term flexibility in the path of fiscal adjustment should be considered in the light of lacklustre private demand." |
| Stephen Gifford, director of economics from the business lobby group the CBI, said: "With recent data from our business surveys suggesting that growth at the beginning of this year was broadly flat, it's not surprising that the IMF has lowered its forecast. | Stephen Gifford, director of economics from the business lobby group the CBI, said: "With recent data from our business surveys suggesting that growth at the beginning of this year was broadly flat, it's not surprising that the IMF has lowered its forecast. |
| "Consumers are being squeezed by high inflation and low wages and business confidence remains unsettled, so the pace of growth is expected to be muted through 2013." | "Consumers are being squeezed by high inflation and low wages and business confidence remains unsettled, so the pace of growth is expected to be muted through 2013." |
| Japan was the only developed economy to come out with a good prognosis from the IMF. | Japan was the only developed economy to come out with a good prognosis from the IMF. |
| It said that the country, which has been mired in recession for much of the last 20 years, would see growth both this year and next, of 1.4% and 1.6% respectively. | It said that the country, which has been mired in recession for much of the last 20 years, would see growth both this year and next, of 1.4% and 1.6% respectively. |
| It also said consumer prices would notch up 0.1% this year and hit a rare height of 3% in 2014, thanks to the Bank of Japan's new bout of monetary easing announced earlier this month. | It also said consumer prices would notch up 0.1% this year and hit a rare height of 3% in 2014, thanks to the Bank of Japan's new bout of monetary easing announced earlier this month. |
| More generally, the IMF said "the road to recovery in the advanced economies will remain bumpy". | More generally, the IMF said "the road to recovery in the advanced economies will remain bumpy". |
| Its report forecast US growth of 1.9% this year, an Chinese growth of 8% for the year as a whole, slightly higher than the 7.7% growth rate it reported this week. |