HMT's response to the IMF's April World Economic Outlook is
below.
A HM Treasury Spokesperson said:
“Today's report shows we are winning the battle against high
inflation, with the IMF forecasting that it will fall much faster
than previously expected.
“The forecast for growth in the medium term is optimistic, but
like all our peers, the UK's growth in the short term has been
impacted by higher interest rates, with Germany, France and Italy
all experiencing larger downgrades than the UK.
“With inflation falling, wages rising, and the economy turning a
corner, we have been able to lower taxes for 29 million people,
as part of our plan to reward work and grow the economy.”
Notes to editors
Additional information:
- The IMF World Economic Outlook shows:
- Inflation is forecast to fall faster than the IMF expected
compared to their October 2023 WEO, with 2024 expected at 2.5% (a
1.2ppt fall) and 2.0% (0.1ppt fall) in 2024 and 2025
respectively.
- UK growth is projected to be 6th in the G7 for 2024. For
2025, the UK is 3rd in the G7, and the fastest growing G7 economy
in Europe.
- For 2029, UK GDP growth (1.4%) is projected to be 3rd-fastest
in the G7, behind Canada (1.7%) and the US (2.1%).
- Germany, France and Italy have seen forecast growth across
2024 and 2025 reduced by more than the UK's.
- The combined impact of the Autumn and Spring policy packages
is a permanent 0.5% increase in the level of potential output by
the end of the OBR's forecast.
- To reward work, we have cut National Insurance for 29 million
people worth £9 billion per year, worth £450 for the average
employee on £35,400 and £350 for the average self-employed person
on £28,200.
- Full expensing is the biggest business tax cut in modern
British history worth over £50 billion over the next five years –
helping companies to invest for less.
- Since 2010, the UK has grown faster than France, Japan and
Italy, and Germany.
