IMF upgrades UK growth forecast

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CHANCELLOR George Osborne’s austerity measures were given a boost yesterday when the International Monetary Fund (IMF) upgraded its economic growth forecasts for the UK.

The IMF now thinks Britain’s economy will grow by 0.9 per cent this year, compared with its previous estimate of 0.3 per cent in April, when it lowered its prediction.

But the Washington-based body said global growth will “remain subdued” as it cut its forecast for world output by 0.2 percentage points this year and next, to 3.1 per cent and 3.8 per cent.

The IMF said slower growth in countries such as China would drag on the global performance and warned authorities in the eurozone will have to continue taking action to keep the debt crisis at bay.