.css-14iz86j-BoldText{font-weight:bold;}The International Monetary Fund (IMF) has said continuing government support is “essential” for the struggling UK economy to recover.

The UK can afford it, and support is needed to see it through the coronavirus pandemic and the Brexit transition, the IMF said.

Coronavirus infections are climbing rapidly again in the UK and elsewhere.

The IMF said the coronavirus recession is likely to be more severe than it had predicted just a few weeks ago.

It said the second wave of coronavirus, Brexit uncertainty, rising unemployment and stress on firms’ balance sheets would make for a more “muted” recovery than it forecast earlier this month.

The IMF predicted that the UK economy would shrink by 10.4% in 2020, and partially recover in 2021, with growth at 5.7%. .css-yidnqd-InlineLink:link{color:#3F3F42;}.css-yidnqd-InlineLink:visited{color:#696969;}.css-yidnqd-InlineLink:link,.css-yidnqd-InlineLink:visited{font-weight:bolder;border-bottom:1px solid #BABABA;-webkit-text-decoration:none;text-decoration:none;}.css-yidnqd-InlineLink:link:hover,.css-yidnqd-InlineLink:visited:hover,.css-yidnqd-InlineLink:link:focus,.css-yidnqd-InlineLink:visited:focus{border-bottom-color:currentcolor;border-bottom-width:2px;color:#B80000;}@supports (text-underline-offset:0.25em){.css-yidnqd-InlineLink:link,.css-yidnqd-InlineLink:visited{border-bottom:none;-webkit-text-decoration:underline #BABABA;text-decoration:underline #BABABA;-webkit-text-decoration-thickness:1px;text-decoration-thickness:1px;-webkit-text-decoration-skip-ink:none;text-decoration-skip-ink:none;text-underline-offset:0.25em;}.css-yidnqd-InlineLink:link:hover,.css-yidnqd-InlineLink:visited:hover,.css-yidnqd-InlineLink:link:focus,.css-yidnqd-InlineLink:visited:focus{-webkit-text-decoration-color:currentcolor;text-decoration-color:currentcolor;-webkit-text-decoration-thickness:2px;text-decoration-thickness:2px;color:#B80000;}}This was a downward revision from just a few weeks ago when it upgraded its forecast.

Britain can afford to ramp up its already massive spending push to counter the effects of the coronavirus pandemic, the IMF’s managing director Kristalina Georgieva said.

Invigorating growth as the pandemic subsides will take more spending, the IMF said.

The UK government should increase public investment and bolster welfare support for people who lose their jobs because of the crisis, she said.

The government has been supporting the UK through a number of initiatives, including the jobs furlough scheme that ends on Friday, to and be replaced by a different scheme.

“My main message today is that continued policy support is essential to address the pandemic and to sustain and invigorate a recovery,” Ms Georgieva said in an online presentation alongside Chancellor Rishi Sunak.

“We welcome that the authorities have committed to deliver it as long as necessary to boost expectations and confidence. The policy space exists to do this,” she said.

Mr Sunak welcomed the IMF report, which he said endorsed his economic policies and his warnings that there would need to be action in future to reduce borrowing.

“Let me be clear on what the Fund is saying today. It’s right to support the economy in the short term, but over time – and in line with other major economies – we must get our public finances back on a sustainable path,” he said.

The IMF said the government’s “aggressive” policy response to the pandemic was one of the “best examples of coordinated action globally”, and had helped to hold down unemployment and the number of firms going bust.

Nevertheless, economic output has “dropped dramatically”, it said, and public and private debt levels are set to rise significantly.

The IMF has estimated that Britain is on course to rack up a budget deficit of 16.5% of gross domestic product this year, dwarfing the damage wrought on the country’s public finances by the global financial crisis.

Ms Georgieva said fixing the public finances could not be ignored but should only happen “once the private sector has durably picked up steam”.

IMF staff said increases in the rate and scope of major taxes would be almost inevitable.

The Treasury declined to comment.

.css-1hlxxic-PromoLink:link{color:inherit;}.css-1hlxxic-PromoLink:visited{color:#696969;}.css-1hlxxic-PromoLink:link,.css-1hlxxic-PromoLink:visited{-webkit-text-decoration:none;text-decoration:none;}.css-1hlxxic-PromoLink:link:hover,.css-1hlxxic-PromoLink:visited:hover,.css-1hlxxic-PromoLink:link:focus,.css-1hlxxic-PromoLink:visited:focus{color:#B80000;-webkit-text-decoration:underline;text-decoration:underline;}.css-1hlxxic-PromoLink:link::after,.css-1hlxxic-PromoLink:visited::after{content:”;position:absolute;top:0;right:0;bottom:0;left:0;z-index:2;}Red tape is back post-Brexit, but will it be ready?

IMF upgrades 2020 economic forecast but warns of a slower 2021

Ethiopia hospital ‘struggles’ in wake of fighting

The main hospital in Tigray’s capital is low on painkillers and body bags, the Red Cross says.

Maradona’s doctor investigated over ‘manslaughter’

What’s happened to the mysterious metal monolith?

Santa’s Grottos can open in new Christmas guidance

‘Did air pollution kill my daughter?’

The harm done by ‘funny’ anti-vaccine memes

The popstar and the rescue of a lonely elephant. VideoThe popstar and the rescue of a lonely elephant

Gary Barlow: ‘I’m not as confident as I was at 21’

Who is the real Leroy Logan?

Covid and schools: ‘Kids know things aren’t right’

‘I think about the London Bridge attack every day’

When does lockdown actually end? And other questions

‘I didn’t know other LGBT Muslims existed’ Video’I didn’t know other LGBT Muslims existed’

.css-orcmk8-HeadlineContainer{display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-box-pack:justify;-webkit-justify-content:space-between;-ms-flex-pack:justify;justify-content:space-between;}Diego Maradona: Police raid house and clinic of doctor.css-1dedj2h-Rank{-webkit-align-self:center;-ms-flex-item-align:center;align-self:center;color:#B80000;margin-left:3.125rem;}1

Utah monolith: Has the mysterious metal object disappeared?2

Sydney records hottest November night on record3

Dozens of farm workers killed in ‘insane’ Nigeria attack4

The Crown should carry fiction warning, says culture secretary5

Ethiopia’s Tigray crisis: Mekelle hospital struggling after attack – Red Cross6

Canada bans mass exports of prescription drugs7

Romain Grosjean: Haas driver suffers burns after huge Bahrain GP crash and fire8

Swiss vote to reject Responsible Business Initiative9

Dave Prowse: Darth Vader actor dies aged 8510

© 2020 BBC. The BBC is not responsible for the content of external sites. .css-8h1dth-Link{font-family:ReithSans,Helvetica,Arial,freesans,sans-serif;font-weight:700;-webkit-text-decoration:none;text-decoration:none;color:#FFFFFF;}.css-8h1dth-Link:hover,.css-8h1dth-Link:focus{-webkit-text-decoration:underline;text-decoration:underline;}Read about our approach to external linking.

Spread the love

Trả lời

Email của bạn sẽ không được hiển thị công khai. Các trường bắt buộc được đánh dấu *

Website này sử dụng Akismet để hạn chế spam. Tìm hiểu bình luận của bạn được duyệt như thế nào.