The International Monetary Fund has upgraded its growth projections for the UK economy this year, in a boost to the Labour government weeks after the general election.
The Washington-based fund said the UK was on course to expand by 0.7 per cent of GDP this year, up from the 0.5 per cent estimate made in April.
The economic recovery from high inflation has been better than expected in recent months, with growth increasing at the fastest pace in two years, according to official figures.
The IMF’s upgrade means the UK is projected to grow faster than Germany (predicted at 0.2 per cent) this year and at the same pace as Italy and Japan.
The fund’s forecast remains lower than some private sector projections, which