Chancellor response to IMF World Economic Outlook

Tuesday, 11 April 2023 14:14

The Chancellor's response to the IMF's April World Economic Outlook is below. Chancellor Jeremy Hunt said: “Thanks to the steps we have taken, the OBR says the UK will avoid recession, and our IMF growth forecasts have been upgraded by more than any other G7 country. “The IMF now say we are on the right track for economic growth. By sticking to the plan we will more than halve inflation this year, easing the pressure on everyone.” Notes to editors...Request free trial

The Chancellor's response to the IMF's April World Economic Outlook is below.

Chancellor Jeremy Hunt said:

“Thanks to the steps we have taken, the OBR says the UK will avoid recession, and our IMF growth forecasts have been upgraded by more than any other G7 country.

“The IMF now say we are on the right track for economic growth. By sticking to the plan we will more than halve inflation this year, easing the pressure on everyone.”

Notes to editors

Additional information:

The UK avoided recession in 2022, and is now expected to avoid recession this year.
The UK was the fastest growing economy in the G7 last year. Since 2010, the UK has grown faster than Japan, France, and Italy, and at about the same rate as Germany.
The OBR forecast shows we are on track to more than halve inflation this year, and reduce debt by the end of the forecast period.
The IMF are predicting that around 90% of advanced economies will see a decline in growth in 2023.
At Autumn Statement 2022, the government took difficult, but necessary, decisions across taxation and spending to restore economic stability.
The OBR said that have said that the measures in the Budget caused them to revise potential output upwards by the largest amount ever in their forecasts.
The Spring Budget delivers on the Chancellor’s plan to get the economy growing again – in a way that does not fuel inflation – with a package of measures under the ‘four Es’.
We’ve tackled two of the biggest issues in UK productivity – employment levels and business investment – head on, while also supporting households with cost-of-living pressures.
As well as increasing growth in the medium term, reforms in the Spring budget also boost sustainable economic growth over the long term – the impact of which will not have been included within the IMF’s forecast horizon of 2024. The OBR has said measures in the budget will help growth reach 2.5% by the middle of the decade – supported by labour market measures adding 110,000 to the labour force over the forecast period.
Countries around the world are facing high inflation - inflation is high in the UK but is still lower than 10 EU member countries.
The government is on track to more than halve inflation this year (2.9%) by continuing to support the independent Bank of England and taking responsible decisions on tax and spending to avoid making the Bank’s job harder.
Monetary policy is the responsibility of the independent Bank of England. The government remains fully committed to the Bank’s independence, and the inflation target of 2%.