UK growth forecast lowered by IMF

<p>The IMF has warned the UK to change economic policy.</p>

The UK has been warned by the International Monetary Fund (IMF) that it ought to change its economic policy in order to achieve stronger levels of growth.

It lowered its expectations of growth for 2013 to just 0.7 per cent for the UK, having previously forecast an expansion of the economy of one per cent for the year.

The IMF also called for George Osborne, chancellor of the exchequer, to consider reining back his austerity plan.

Stephen Gifford, director of economics from the business lobby group the Confederation of British Industry, told BBC News that it is no surprise the IMF has lowered its growth forecasts for the UK in the wake of flat economic data.

"Consumers are being squeezed by high inflation and low wages and business confidence remains unsettled, so the pace of growth is expected to be muted through 2013," he said.

Fears over a triple-dip recession in the UK were recently eased by the news construction data for the country showed the sector's health improved slightly during February.

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