Britain’s economy may grow by more than expected, but inflation is stickier
That makes the choice facing the central bank easier
Britain’s economic outlook is a bit rosier. That at least is the verdict of the IMF, a global financial watchdog, which on May 23rd upgraded its forecast for the country. Instead of falling into a recession this year, as it was predicting in April, the IMF now believes that Britain will eke out growth. The fund attributed the improvement to a trifecta of falling wholesale energy prices, improved financial stability and warmer relations with the EU, exemplified by Rishi Sunak’s recent deal to reduce trade frictions in Northern Ireland.
This article appeared in the Britain section of the print edition under the headline “Bittersweet”
Britain May 27th 2023
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