What are the projections for 2023 in the UK
The IMF explained that the UK economy will be affected by the high energy coststhe rises in mortgage loans and taxes, as well as the persistent worker shortage.
The chief economist of the IMF, Pierre-Olivier Gourinchastold the BBC the UK had “one of the strongest growth numbers in Europe” last year.
But he also noted that this year’s forecast reflects his “high dependence” on liquid natural gas, which increased the cost of living. The inflation of the United Kingdom fell in December to 10.5%although still at its highest level in 40 years. The increase in the interest rate seeks precisely to combat inflation.
The country is undergoing unprecedented strikes to demand wage increases to offset the rise in the cost of living due to inflation. Prime Minister Rishi Sunak promised that he would work in this direction and announced subsidies.
Gourinchas added that the UK government with the plans laid out in the budget November shows that they are “trying to carefully navigate these different challenges and we think they are on the right track.”
Meanwhile, the IMF expects the growth of the United Kingdom to accelerate at an annual rate of 3.7% in 2024.
This would be much higher than the other main countries of the euro zonewhere an average annual growth of 2.7%.
Three years after the United Kingdom left the European Union (EU) on January 31, 2020, the debate on the future of British society continues as the government tries to continue with its plans for economic growth after the impact of the Brexit and the pandemic.
In this sense, the Prime Minister Rishi Sunakstated that the Brexit benefits “empower communities and businesses across the country.”
In a statement, Sunak highlighted the great steps the UK took in leaving the EU after taking advantage of the freedoms unlocked by Brexit and he mentioned the leadership in the launch of vaccines that was the fastest in Europe, the commercial agreements with more than 70 countries, and the recovery of control of its borders.
“And in my first 100 days as Prime Minister, that momentum hasn’t slowed: we’re cutting red tape for businesses, stepping up through our ports and designing our own fairer farming system to protect the British countryside.” Sunak said.
He stated that “this is only the beginning of our plans to fulfill ours five prioritiesincluding growing the economy so we can create better paying jobs”, and assured that he is “determined to ensure that the benefits of Brexit continue to empower communities and businesses across the country”.
This Thursday the Bank of England announced a new rise in its base interest rates at 4%the highest level in 14 years, which represents the tenth consecutive increase in borrowing costs with the aim of continuing to contain inflation.
Source: Ambito
