Britain’s economy may grow by more than expected, but inflation is stickier
That makes the choice facing the central bank easier
Britain’s economic outlook is a bit rosier. That at least is the verdict of the IMF, a global financial watchdog, which on May 23rd upgraded its forecast for the country. Instead of falling into a recession this year, as it was predicting in April, the IMF now believes that Britain will eke out growth. The fund attributed the improvement to a trifecta of falling wholesale energy prices, improved financial stability and warmer relations with the EU, exemplified by Rishi Sunak’s recent deal to reduce trade frictions in Northern Ireland.
This article appeared in the Britain section of the print edition under the headline “Bittersweet”
Britain May 27th 2023
- To survive, Britain’s NHS must stop fixating on hospital care
- Britain’s semiconductor strategy shows the bind the country is in
- With Hollywood on strike, foreign shows enjoy the limelight
- Britain’s economy may grow by more than expected, but inflation is stickier
- British voters want more immigrants but less immigration
From the May 27th 2023 edition
Discover stories from this section and more in the list of contents
Explore the editionMore from Britain
The four worst words in British politics
Saying “not a good look” is not a good look
Inflation in Britain looks irritatingly persistent
Worse, the risk has appeared just as growth is sputtering
Labour lacks good ideas for improving Britain’s schools
Making private ones a bit more expensive is not an inspiring start
Britons brace themselves for more floods
A warming planet is making a soggy island soggier
Why meal-replacement drinks are shaking up the British lunch
They are being rebranded as aspirational as well as efficient