The big reversal in his predictions is amazing IMFwho, revising his estimates, “sees” his wintering economy Britannia grow faster than her Germany this year. After revising and improving its forecasts, the International Monetary Fund now believes that the UK economy will not only avoid recession this year, but will grow faster than its largest and strongest economy. European Union. The factors that will support it will be strong consumption, as well as improved relations with the EU. The UK is expected to grow by 0.4% this year, according to a revised IMF estimate. This is a significant improvement in its forecasts, since last month the Fund predicted that the economy of Old Albion would shrink by 0.3% during the year.

As emphasized by the IMF, one of the factors that will help the British economy will be the fall in energy prices. Overall, UK GDP is expected to grow by 1% in 2024 and by an average of 2% in 2025 and 2026. These numbers will move the UK off the bottom of the G7 list.

A month ago, the fund predicted a 0.3% recession in the UK, now it expects it to grow faster than in Germany.

The prospect of faster growth will give hope to the prime minister’s government Rishi Sunakthat he could promise tax cuts ahead of next year’s elections. The ruling Conservatives are trailing Labor in the polls as the country struggles with rising inflation, weak growth, public sector strikes and higher taxes.

Sunak is trying to restore public confidence in the government and, in particular, in its ability to deal with economic issues. That’s because it comes after the disastrous economic plans of former Prime Minister Liz Truss last year that crashed the pound and sent bond markets into turmoil.

In its regular report on the UK economy, the IMF said its increase reflected stronger wage growth and “improved confidence amid some post-Brexit de-escalation in uncertainty”. But it also says households should prepare for a difficult second half of the year, when the “maximum impact” of higher borrowing costs will be felt.