The UK economy is going to grow less than expected this year - with the International Monetary Fund warning the country will remain the second worst performer in the G7. Newly revised forecasts indicate the UK's gross domestic product will expand by just 0.5% in 2024 - a slight downgrade from previous estimates in January - compared with global growth of 3.2%. However, UK GDP is tipped to increase by 1.
Pierre-Olivier Gourinchas, the IMF's director of research, said: 'Yet, despite many gloomy predictions, the world avoided a recession, the banking system proved largely resilient, and major emerging market economies did not suffer sudden stops.' The IMF believes lower-income countries would be harder hit if food, energy and transport prices rose.