IMF to announce faster UK economic growth than earlier projected

The International Monetary Fund believes the general worldwide upturn, would see the UK economy grow faster and more strongly than that of any other major nation.

Earlier in October, the IMF had made known its view that chancellor George Osborne's  measures were jeopardising economic growth in the UK.

The fact that the IMF had to reverse that recent judgment to a large extent works against the credibility of the organisation in consistent analysis according to commentators.

Back in October the bank had projected UK growth below 2 per cent (at 1.9 per cent).

Today, it forecast UK growth at or just less than 2.5 per cent- likely to be 2.4 per cent.

This comes as a very substantial upwards movement and very good news for the UK – as also the fact that it was making real headway faster than its major competitor economies.

The Washington-based fund has criticised the UK's over-dependence on consumers as also the government's Help-to-Buy housing market scheme. But it would come as much needed boost for chancellor George Osborne when the updates its World Economic Outlook from last October's forecasts.

The fund is also likely to upgrade its outlook for the global economy, which in October it said would expand by 3.6 per cent this year.

According to commentators, that would reflect the tone of cautious optimism, in a New Year's speech from its managing director, Christine Lagarde, last week.

"This crisis still lingers. Yet optimism is in the air: the deep freeze is behind, and the horizon is brighter. My great hope is that 2014 will prove momentous … the year in which the seven weak years, economically speaking, slide into seven strong years," she said.

If confirmed, the substantial upgrade to the UK would likely be used by Osborne as further proof the coalition's "economic plan is working", a phrase used often in recent weeks as indicators had largely pointed to a pick-up in  growth.

The fund had been mostly critical of the coalition's austerity drive and in a damnning indictment of the British chancellor's economic policies last year, the IMF's chief economist Olivier Blanchard warned Osborne would be "playing with fire" unless he went slow on budget cuts.