Jeremy Hunt swipes at IMF saying UK economy WILL avoid recession after GDP flatlined in February – with wave of public sector strikes wiping out gains from construction sector recovery
Jeremy Hunt took a veiled swipe at the IMF today after figures showed the British economy flatlined in February.
GDP held its level over the month as the impact of public sector strikes wiped out a recovery in the construction sector.
However, growth for January was revised up slightly from 0.3 per cent to 0.4 per cent. And over the most recent three months to February UK plc nudged up by 0.1 per cent.
After the IMF gave its latest dire predictions about Britain’s prospects, Mr Hunt insisted the outlook was ‘brighter than expected’ and the country is on track to avoid recession.
‘The economic outlook is looking brighter than expected – GDP grew in the three months to February and we are set to avoid recession thanks to the steps we have taken through a massive package of cost of living support for families and radical reforms to boost the jobs market and business investment,’ he said.
GDP held its level over February, with industrial action blamed for a fall in activity in education and government
Jeremy Hunt took a veiled swipe at the IMF today after figures showed the British economy flatlined in February
ONS Director of Economic Statistics Darren Morgan said: ‘The economy saw no growth in February overall. Construction grew strongly after a poor January, with increased repair work taking place.
‘There was also a boost from retailing, with many shops having a buoyant month.
‘These were offset by the effects of Civil Service and teachers’ strike action, which impacted the public sector, and unseasonably mild weather led to falls in the use of electricity and gas.’
A technical recession is defined as two consecutive quarters of contraction, something the UK has not suffered since the huge Covid hit.
The IMF marginally upgraded its forecast for UK GDP this year and next in its World Economic Output report earlier this week.
But despite the improvement, it estimated that Britain will still have the worst growth in the G7 group of advanced nations in 2023 and 2024.
Germany is the only European country that will have worse growth this year, and Italy next year, the IMF found.
Even Russia was predicted to have stronger growth than Britain – although economists warned that the body had a patchy track record and figures should be taken with a huge pinch of salt.
The report showed that overall advanced economies are set to have slower growth than developing economies.
UK output is expected to contract by 0.3 per cent this year before rebounding to grow by 1 per cent next year, economists working for the body said.
But it is at least better news than a previous IMF forecast, which predicted that the economy would shrink by 0.6 per cent this year.
The IMF upgraded its forecast for UK GDP this year and next in its World Economic Output report today. But despite the improvement, it will still have the worst growth in the G7 group of advanced nations in 2023 and 2024.
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