The International Monetary Fund (IMF) has said that the UK economy will have a “soft landing” as it is growing faster than expected.
Ahead of the general election the IMF insisted that structural reforms are “urgently needed” to improve living standards.
According the report gross domestic product (GDP) is predicted to grow by 0.7% this year compared to their previous expectation of 0.5% growth.
For next year the IMF are expecting a growth of 1.5%, however due to weak labour the economy’s long-term growth expectations “remain subdued” with higher than expected inactivity due to many failing sick.
The IMF said: “With growth recovering faster than expected, the UK economy is approaching a soft landing, following a mild technical recession in 2023.
“CPI inflation has fallen faster than was envisaged last year and is projected to return durably to target in early 2025.”
Chancellor of the Exchequer Jeremy Hunt said: “Today’s report clearly shows that independent international economists agree that the UK economy has turned a corner and is on course for a soft landing.
“The IMF have upgraded our growth for this year and forecast we will grow faster than any other large European country over the next six years – so it is time to shake off some of the unjustified pessimism about our prospects.”