The International Monetary Fund (IMF) has
sharply raised its forecast for the rate of UK growth this week. What does this
mean for the industry of business acquisition?
The IMF released its current forecast of UK
growth this week and it significantly outmatched previous expectations. It has
now stated that it expects the UK economy to grow by 2.4% in 2014. The previous
figure suggested was 1.9%, meaning a rise in expectation of 0.5%.
This wasn’t the only figure on the forecast of
UK growth the IMF released. They also released an expected figure of 2.2% for
2015, which if these figures prove correct would only be a drop of 0.2%.
Notably the organisation put global economic
growth for 2014 at 3.7%, slightly higher than it has previously predicted. It
also released its figures for the world’s largest economy, the US, 2.8%, which
is a 0.2% improvement from the figure it quoted back in October.
The report also provided figures for two key
economic areas; the Eurozone and China. The Eurozone together is predicted to
grow by 1%, a significant figure considering the trouble the continent has
faced over its finances in the past few years. It measured China’s economic
growth at 7.5% a figure that’s expected for the world’s largest growing
economy.
These figures are telling. The whole world is
set to grow this year, however the rate of British economic growth is
particularly strong. An article for the BBC on the subject reports a statement
made by the Treasury on the news.
It said that "[The IMF] report provides further evidence that
the government's long term economic plan is working." However the spokesperson also noted that the
job is “not yet done” and that “the government will go on taking the difficult
decisions necessary to deliver a sustainable recovery for all."
This rising confidence in the expectations of the UK
market has come from several factors. Unemployment is decreasing, the
manufacturing and retail industries are enjoying strong growth and inflation
has fallen into line with the government’s 2% goal.
