Gloomy IMF growth forecast

21/09/11

The UK's growth forecast has been cut for the third time in nine months by the International Monetary Fund, sparking concerns over economic recovery.

Further underperformance may require a policy U-turn the IMF warned, a move which would be extremely embarrassing for the chancellor George Osborne.

UK gross domestic product is predicted to grow by just 1.1% in 2011, compared to the 1.5% forecast given by the IMF in June.

The decreased forecasts have led to speculation that an emergency £5 billion could be injected into the economy to help promote growth.

William Hague: We are restoring health to national finances despite IMF forecast

Treasury: IMF forecast shows UK will grow more strongly than eurozone next year

Ed Balls: Govt must focus on economic growth not just deficit reduction

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