In Brief

IMF: British economy ‘to grow faster than eurozone’

Washington-based institution has revised its growth forecasts

Two studies have forecast that Britain’s economy will grow faster than major Eurozone rivals this year.

The International Monetary Fund predicts that, assuming there is an orderly Brexit and a steady transition to a new relationship with the bloc, growth would accelerate from 1.3% last year to 1.4% this year and 1.5% in 2021.

It believes that the eurozone will grow by 1.3% this year and 1.4% next. Germany, France, Italy and Japan will struggle to keep up and the only two G7 advanced economies to outpace Britain would be the United States and Canada.

The Times says that PWC’s global CEO survey found that European chief executives regard Britain as a key market for growth and investment.

The accounting firm found that Britain was rated as the fourth most important territory for growth, after the United States, China and Germany, as the country’s “attractiveness” returns to levels last recorded in 2015.

Bob Moritz, PWC chairman, told the American broadcaster CNBC: “When you look at the UK specifically... you have got a little bit more certainty.”

However, CNBC adds that the IMF has become less optimistic about global growth. After forecasting in October a global growth rate of 3% for 2019 and of 3.4% for 2020, the Washington-based institution has now revised down those forecasts to 2.9% and 3.3%, respectively.

“The projected recovery for global growth remains uncertain. It continues to rely on recoveries in stressed and underperforming emerging market economies, as growth in advanced economies stabilises at close to current levels,” Gita Gopinath, the IMF’s chief economist, said.

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