UK economy to grow by 2.4% in 2014, optimistic IMF report suggests

The International Monetary Fund is expected to raise its UK growth forecasts for 2014 from 1.9% to 2.4%, which would push up the country’s growth forecasts by more than for any other major economy.

If confirmed, the substantial upgrade would represent a major boost for the Chancellor’s economic policies, some of which received some strong criticism from the IMF over the past few years, a news report has suggested.

Furthermore, it seems that not only Britain, but also the global economy is poised for a significant rise over the course of the year, as the fund is expected to also upgrade its worldwide forecast, compared to the value suggested last October (3.6%).

The IMFs report reflects the economists’ general consensus regarding the future growth of UK economy, which is set to be one of the steepest, at a global level.

In fact, business group CBI has already forecast a growth of 2.4% for 2014, while the British Chambers of Commerce expects the economy to soar by 2.7% and the OBR also by 2.4%.

A report from EY Item Club on Monday also suggests UK economic growth would pick up to 2.7% this year from 1.9% in 2013.

However, experts have also warned that the recovery should be built on solid foundations, focusing on developing or consolidating new business rather than benefiting from higher consumer spending.

Plus, there have also been warnings that the recovery is not being felt throughout the UK, and is instead largely benefiting London and the south-east, with the rest of the regions still feeling the sting of severe unemployment and lower wages.