Wednesday, May 20, 2009

IMF: The speed and pace of restoring Britain's "unclear"

On Wednesday, the International Monetary Fund said that the speed and strength of the British economic recovery is very doubtful, but praised the authorities for "bold and comprehensive" response to the crisis.
Article IV of the review of the British policy of the International Monetary Fund stressed that a significant stimulation of policy and a weaker currency would help the economy recover, but the limitation is the balance sheet of banks and households.
"The speed and strength of recovery, however, very doubtful, given the unprecedented nature of the crisis and the importance of trust in the process of recovery" - a report of the International Monetary Fund in Britain. The International Monetary Fund gave the UK a wide field for action in its tax policy in recent months, calling "balanced interim financial incentives."
However, the IMF believes that the government should aim at reducing the state. debt faster than outlined in general terms, the rate in the budget last month.
In its recent projections for the world economy The International Monetary Fund predicted that the British economy will fall to 4.1% this year and by 0.4% in 2010. The British Government expects that the economy will reduce growth by 3.5% this year and grow by 1.25% in 2010.

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