Covid: UK economy set to grow more slowly than forecast, says IMF

UK economy set to grow more slowly than forecast after Covid, says International Monetary Fund

1/25/2022 6:07:00 PM

UK economy set to grow more slowly than forecast after Covid, says International Monetary Fund

The IMF says the global economy is entering 2022 in a weaker position than previously expected.

The forecast for UK growth in 2022 has been cut to 4.7% from 5% in the IMF's latest world economic outlook.At the same time, the IMF has sharply downgraded its forecasts for the two biggest global economies - the US and China - citing new Covid curbs and high energy prices among its reasons.

"The global economy enters 2022 in a weaker position than previously expected," said the IMF report."And the ongoing retrenchment of China's real estate sector and slower-than-expected recovery of private consumption have limited growth prospects."

Read more: BBC News (UK) »

Long queues on motorways as campaigners stage fuel protests

Groups have begun protesting across the country amid rising fuel crosts Read more >>

🤡🥸🤡

New Covid sub-variant may 'outpace Omicron' as 400 UK cases found, boffins sayAll areas of the UK are set to be restriction-free by the end of this week, apart from isolation requirements, and scientists don't seem too bothered about this new sub-variant

'It was close to terminal' Raymond Blanc opens up on his touch-and-go Covid battleRAYMOND BLANC admitted his fight with Covid back in December 2020 was a stark wake-up call, after he was almost put on a respirator. Hello Iam saleem from syria I have two kids I live with my family in a camp near turkish border We need help to get some basic needs Can you help us or know anyone can help

Holidays boost as ministers set to axe Covid tests for fully-jabbedThe Prime Minister, speaking on a visit to Milton Keynes today, said: 'We have, thanks to the tough decisions, the big calls that we made... the most open economy and society in Europe. 👀

Schools to bring back face masks if Covid cases are high in their areaSCHOOLS can bring back mask rules if there are high levels of Covid in their local area, Nadhim Zahawi said today. The education secretary said pupils may have to start wearing face coverings in co… They never needed to stop using them. Removal of a mandate doesn't force you to stop using them.

Minister resigns in protest at handling of fraudulent Covid loansResponding to question on £4.3bn in Covid payments lost to fraud, Lord Agnew says he is unable to defend government So I get the parties fueling the calls to resign, but certainly 'following the money' would mean this and the no-bid contracts for cronies would be the larger story? DON'T WAIT FOR RUSSIA TO ATTACK! Strangle Sanctions should be placed on Russia for 'creating a threat' to an independent country. Otherwise, these events are unfolding according to the Kremlin playbook and that way, they gain, all others lose, in many ways. SANCTIONS NOW! Good For You Lord Agnew! Sunak should be ashamed of himself for writing off this debt - how many families could this money help if it were to be recovered? He should chase the debtors with vigour - it is taxpayers' money after all.

Another 88,447 Covid cases recorded as infections continue to fallBREAKING: A further 88,447 Covid cases have been recorded across the UK in the latest Government figures released on Monday Well it would go down if you’re not PCR testing anymore and obligation on self tester to choose between SSP or stay working. Hospitalisations and death rates only true measure that Johnson hasn’t yet found a way to fudge… yet.

Image source, Getty Images The UK economy will grow more slowly than expected this year as it recovers from the Covid pandemic, the International Monetary Fund has said. The forecast for UK growth in 2022 has been cut to 4.7% from 5% in the IMF's latest world economic outlook. However, this will be the fastest in the G7 industrialised nations, as it was last year. It partly reflects a rebound from sharp falls the UK suffered during initial pandemic lockdowns two years ago. At the same time, the IMF has sharply downgraded its forecasts for the two biggest global economies - the US and China - citing new Covid curbs and high energy prices among its reasons. Overall, the IMF now expects global growth to go from 5.9% in 2021 to 4.4% in 2022, half a percentage point lower for this year than in its last prediction in October 2021. Omicron woes "The global economy enters 2022 in a weaker position than previously expected," said the IMF report. As the new Omicron Covid-19 variant spreads, countries have re-imposed restrictions. "Rising energy prices and supply disruptions have resulted in higher and more broad-based inflation than anticipated, notably in the US and many emerging market and developing economies. "And the ongoing retrenchment of China's real estate sector and slower-than-expected recovery of private consumption have limited growth prospects." The IMF predicted that the higher levels of inflation currently seen in the global economy would go on for longer than it anticipated in its last forecast, persisting for most of 2022. It said supply chain disruptions, energy price volatility and localised wage pressures meant that "uncertainty around inflation and policy paths" was high. Big revisions US economic growth for this year was downgraded by the IMF from 5.2% to 4% after it removed the effects of President Joe Biden's Build Back Better fiscal policy package from its calculations. and is unlikely to be enacted in its present form. China's forecast for 2022 was cut from 5.6% to 4.8%. "In China, disruption in the housing sector has served as a prelude to a broader slowdown," the IMF report said. "With a strict zero-Covid strategy leading to recurrent mobility restrictions and deteriorating prospects for construction sector employment, private consumption is likely to be lower than anticipated." The IMF said the cut in expectations for global growth also reflected revisions among some other large emerging markets. In particular, the two biggest Latin American economies, Brazil and Mexico, suffered the largest growth downgrades. Brazil, where far-right President Jair Bolsonaro is seeking re-election later this year, is now expected to grow by just 0.3% in 2022, down from the previous forecast of 1.5%. Mexico also saw a downgrade of 1.2 percentage points and is now predicted to see growth of 2.8%. More on this story