The UK economy is ‘back on’, says UK Chancellor of the Exchequer Jeremy Hunt, according to the BBC. His strategy to boost the economy further was also welcomed at the International Monetary Fund meeting in Washington, Hunt said.
Good song
Britain’s finance minister said the IMF saw it as “getting the UK economy back on track”. It was a very different picture from the previous IMF meeting in October. His predecessor, Kwasi Kwarteng, left the meeting early amid a barrage of criticism.
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However, the latest figures do not show that the UK economy grew in February, wrote the BBC. Earlier this week, the IMF also forecast that the UK economy would shrink by 0.3 percent in 2023. This would make it one of the worst performing major economies in the world.
Recession averted
According to Hunt, it was “another finance minister who said the UK was back”. He said it was to answer the question whether the UK’s current economic performance undermines the positive message. After months of strikes, soaring prices and labor shortages, the UK economy has only recently returned to pre-pandemic levels.
‘I look forward to faster growth and reduced inflation in coming months’
Minister of Finance stated that it is important to prevent inflation triggered by further wage increases. According to Hunt, the UK has so far avoided a recession. “I look forward to faster growth and reduced inflation in the coming months,” Hunt said. Economic growth should be stimulated by measures to help companies recruit more staff and increase investment.
Trust
However, confidence in the UK economy was undermined last year by Prime Minister Truss’ short-lived government. The former Kwarteng Finance Minister presented an economic strategy that included large tax cuts without explaining how this would be financed. And the current banking crisis could also hamper the UK’s economic growth.
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However, Hunt believes the UK has a ‘very strong and resilient banking system’ and is in a better position than it was before the 2008 financial crisis. ‘I am confident in the resilience of our banking system’, said Hunt.
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