The International Monetary Fund (IMF) has reduced its prediction for UK economic growth, along with several other G7 economies.
Previously forecast for 2.7% growth in 2015, the IMF now expects UK growth to reach only 2.4% this year, and 2.2% in 2016. However it was keen to point out that global growth prospects are still high, despite factors such as the Greek debt crisis and unstable markets in Asia.
Explaining the cause for this sudden downturn, Oliver Blanchard, Chief Economist at the IMF, said: ‘For the most part, it was a series of accidents….and the rest of the year should not be very much affected’.
Globally, output is expected to improve by 3.3%, an overall drop from the 3.5% predicted three months ago.
Confident in a swift improvement, the IMF added: ‘The underlying drivers for a gradual acceleration in economic activity in advanced economies – easy financial conditions, more neutral fiscal policy in the euro area, lower fuel prices, and improving confidence and labour market conditions – remain intact’.