IMF: UK economy will shrink by 0.4% this year

The International Monetary Fund has slashed its forecast for the UK economy's growth, it predicts it will shrink by 0.4% this year.

In July, growth of 0.2% was forecast for the year.

The IMF also cut its forecast for next year from 1.4% to 1.1%.

Advertisement

IMF warns about 'damaging cuts'

The head of the International Monetary Fund has urged countries to ease back on cuts because of the impact on growth. It has previously warned the global economic recovery was weakening as government policies have failed to restore confidence.