The IMF cut its forecast for UK economic growth | 26 Januari 2022

26 Januari 2022, GBP/USD

The IMF cut its forecast for UK economic growth

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The International Monetary Fund cut its forecast for British economic growth this year due to disruption from the Omicron variant of the coronavirus, labour shortages and high energy prices. The IMF said it now expected British gross domestic product would expand by 4.7% in 2022 and by 2.3% in 2023, compared with its previous forecasts - made in October - of 5.0% and 1.9%. "In the United Kingdom, disruptions related to Omicron and supply constraints - particularly in labour and energy markets - mean that growth is revised down," the IMF said. Most British households will face big increases in their domestic energy bills in April when regulated tariffs are due to rise by around 50% and broader consumer price inflation is on track to hit its highest in 30 years.

Investment idea: sell 1.3535 and take profit 1.3455.

David Johnson
Analyst of «FreshForex» company
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