IMF raises UK's growth forecast

The International Monetary Fund has upgraded its forecast for Britain's economy, amid "welcome signs" that the pace of economic activity is finally beginning to pick up after the global crash.

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IMF forecast 'a powerful statement of confidence' in UK

This is a powerful statement of confidence in Britain's economy. The IMF has doubled its forecast for UK growth this year and further raised its predictions for 2014.

Crucially, since July, the UK forecast has improved above all other G7 countries as our industries forge ahead in global markets.

This Government has set Britain on the right course by repairing the country's finances and helping to create over a million jobs.

We must continue to work hard to build a stronger economy and do it fairly - with investment in jobs and measures such as the increased personal tax allowance putting more money in the pockets of hard-working people.

– Nick Clegg, Deputy Prime Minister

Ed Balls: 'We need more action to secure the recovery'

Shadow chancellor Ed Balls said that despite the upgrade the poor figures still represented the slowest recovery for 100 years and called on the Government to take action to boost growth.

Despite these welcome changes to its forecasts, the IMF rightly warns that the UK economy will remain below potential for many years. That's why the IMF has repeated its view that the Government should bring forward infrastructure investment now, which could be used to build thousands of affordable homes.

Instead of more complacency from George Osborne, we need action to secure a strong and sustained recovery, catch up all the lost ground and tackle the cost of living crisis.

– Ed Balls, Shadow Chancellor

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IMF upgrade 'proof our economic strategy is working'

The Treasury said the upgrade in the UK's growth forecast , which is the biggest for any of the G7 nations - showed the Government's economic strategy was working.

"The IMF has confirmed that the UK economy is turning a corner, by revising up its forecast for growth over the next two years by more than for any other G7 economy," a spokesman said.

"But risks to the global economy remain high, and the recovery cannot be taken for granted.

The treasury has said that the IMF upgrade 'is proof our economic strategy is working'. Credit: Dominic Lipinski/PA Wire

"That is why the Government will not let up in implementing its economic plan, which has already cut the deficit by a third, kept interest rates near record lows and created over a million-and-a-quarter jobs."

IMF urges UK government to increase investment

The IMF said that with interest rates remaining low, the Government could afford to do more to boost growth through long-term investment projects while sticking to its plan for tackling the deficit:

In an environment of still low interest rates and under-utilisation of resources, public investment can also be brought forward to offset the drag from planned near-term fiscal tightening, while staying within the medium-term fiscal framework.

– IMF

'Welcome signs' for Britain's economic recovery

The International Monetary Fund (IMF) has upgraded its forecast for Britain's economy, amid "welcome signs" that the pace of economic activity is finally beginning to pick up after the global crash.

The IMF has upgraded its forecast for Britain's economy. Credit: Yui Mok/PA Wire

But in its latest World Economic Outlook, the IMF said that it would still take years before Britain's economy sees a full recovery.

It suggested the Government should now bring forward public investment projects to offset the squeeze on near-term Whitehall spending.

IMF predicts UK growth of 1.4 per cent this year

The International Monetary Fund has upgraded its forecast for Britain's economy.

The world financial watchdog said it now expected the UK to see growth of 1.4 per cent this year rising to 1.9 per cent in 2014, compared to its last forecast in July of 0.9 per cent growth in 2013 and 1.5 per cent next year.

However, the IMF did warn that it would take years before Britain's economy recovered completely from the financial crash in 2008.

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