The IMF has just come out with a forecast of UK growth which is at odds with what the OBR forecast for the plans by the conservatives. They have forecast a slower rate of growth for the UK economy which may well interfere with the plan to reach budget surplus by 2019, and that the UK government and people should expect to see a £7 billion deficit rather than a £ billion surplus.
The IMF points towards uncertainty created by election results as a significant cause for concern, potentially reducing UK growth from 2.9% this year to 2.3% in 2016. It is worth keeping in mind however, that the IMF has consistently underestimated the UK growth in their forecasts throughout the last few years, and we may well surprise them yet again.
While 2.3% growth is not as good as what the OBR predicted, it is still far better than what we’ve gone through over the majority of the last 7 years, so businesses shouldn’t become too concerned by it.