IMF: UK Recovery Likely Moderate; Welcomes Fiscal Squeeze

LONDON (MNI) – The International Monetary Fund has welcomed the UK
government’s planned fiscal tightening, but warned the pace of the
recovery was likely to be moderate.

The IMF’s Article IV consultation said the UK economic recovery is
underway but said the fiscal tightening will “dampen short-term growth”.

It said its central forecast was for “moderate growth”, with GDP
growing 2% next year, with considerable risks around this scenario.

–London newsroom 0044-207-862-7491; email: drobinson@marketnews.com

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