The International Monetary Fund (IMF) has become the latest organisation to revise down its economic growth forecast for UK.
In its April World Economic Outlook, the IMF says UK’s GDP will grow by 1.7 per cent over the course of 2011, a downward revision of 0.3 percentage points on its January forecast.
This means the IMF’s GDP forecast is now in line with that of the Office for Budget Responsibility, which last month cut its prediction from 2.1 per cent to 1.7 per cent.
The report also singled out British inflation as a sign of overheating in the economy, although otherwise the country’s economy is more sluggish than the G20 average.
France, Italy and America are the only countries deemed to be free of overheating indicators.
In the world as a whole, the IMF predicts GDP growth of 4.4 per cent in 2011 and 4.5 per cent in 2012, unchanged from January.
Canada is the country which has seen its 2011 GDP growth forecast rise strongest, up 0.5 percentage points to 2.8 per cent. The Middle East and North Africa saw the largest fall, dropping 0.5 percentage points to 4.1 per cent.