UK will grow faster than all other G7 countries in 2014, says IMF

The International Monetary Fund (IMF) has increased its forecast for the UK economy for the third time in a row, and now believes we will see 2.9% growth this year.

That will make us the fastest-growing economy in the G7, meaning we are set to outperform the US, Germany, Japan, France, Canada and Italy. (Russia was suspended from the original G8 at the end of March.)

The IMF is forecasting further UK growth of 2.5% in 2015.

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The 2.9% it is predicting for this year is significantly improved from the 2.4% is was forecasting for the UK in January.

But the IMF does have some doubts over our exports and business investment.

“Growth has rebounded more strongly than anticipated in the United Kingdom on easier credit conditions and increased confidence,” the IMF’s World Economic Outlook report said.

“However, the recovery has been unbalanced, with business investment and exports still disappointing.”

The IMF is forecasting world economic growth of 3.6% this year and 3.9% in 2015.