 At first blush, the International Monetary Fund's updated UK economy forecast is good news. Rather than shrink by 0.3 percent, as was predicted earlier in the year, the UK economy will grow by 0.4 percent in 2023 and 1.00 percent in 2024. This upgrade – driven by falling energy prices and greater economic certainty – is yet another sign that forecasts should be taken with a large grain of salt. Time and time again, overly pessimistic predictions are used by political actors to talk down Britain compared to other countries. But it's not all rosy. Avoiding a recession by a whisker is hardly something to celebrate. UK growth will still be the slowest in the G7, coming only after Germany. The longer-term picture is bleak. Britain's economy has been stagnant for over a decade. The United States is now an astonishing 39 percent richer than Britain. Put differently, Americans could stop working on September 22nd and still be richer than Britons working the entire year. IMF updates UK forecasts (Image: Getty) South Korea and Slovenia are about to overtake the UK on GDP per capita, while Poland, on the current trajectory, will be richer in 12 years Economic growth is often dismissed as irrelevant to people's lives, if not counterproductive. Indeed 'GDP' is abstract. But the practical consequences of low growth are all around us. Lower wages, greater impoverishment, and crippling infrastructure. There is no bigger issue facing Britain than growth. Yet our political leaders are failing to meet the challenge. Instead, they constantly burden businesses with more cumbersome red tape that holds us back.. It's possible to set a new path – from reforming Britain's broken planning system to addressing the cost of energy and cutting and simplifying taxes. The challenge is gigantic, but so is the opportunity. Matthew Lesh, Director of Public Policy and Communications at the Institute of Economic Affairs){kind=link}
Chancellor Jeremy Hunt to improve UK economy (Image: Getty) At first blush, the International Monetary Fund’s updated UK economy forecast is good news. Rather than shrink by 0.3 percent, as was predicted earlier in the year, the UK economy will grow by 0.4 percent in 2023 and 1.00 percent in 2024. This upgrade – driven by falling energy prices and greater economic certainty – is yet another sign that forecasts should be taken with a large grain of salt. Time and time again, overly pessimistic predictions are used by political actors to talk down Britain compared to other countries. But it’s not all rosy. Avoiding a recession by a whisker is hardly something to celebrate. UK growth will still be the slowest in the G7, coming only after Germany. The longer-term picture is bleak. Britain’s economy has been stagnant for over a decade. The United States is now an astonishing 39 percent richer than Britain. Put differently, Americans could stop working on September 22nd and still be richer than Britons working the entire year. IMF updates UK forecasts (Image: Getty) South Korea and Slovenia are about to overtake the UK on GDP per capita, while Poland, on the current trajectory, will be richer in 12 years Economic growth is often dismissed as irrelevant to people’s lives, if not counterproductive. Indeed ‘GDP’ is abstract. But the practical consequences of low growth are all around us. Lower wages, greater impoverishment, and crippling infrastructure. There is no bigger issue facing Britain than growth. Yet our political leaders are failing to meet the challenge. Instead, they constantly burden businesses with more cumbersome red tape that holds us back.. It’s possible to set a new path – from reforming Britain’s broken planning system to addressing the cost of energy and cutting and simplifying taxes. The challenge is gigantic, but so is the opportunity. Matthew Lesh, Director of Public Policy and Communications at the Institute of Economic Affairs
There is no bigger issue facing Britain than growth, says Matthew Lesh
Sourceexpress.co.uk
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