Faltering UK to grow at just 0.2% this year - IMF

The IMF has cut its forecasts for UK GDP growth for both this year and next as it warns of a "ratcheting up" of financial market and sovereign stress in the eurozone periphery.

The organisation cut its forecast for UK GDP growth in 2012 to just 0.2%, down from the 0.8% it predicted in its April 2012 update. Its forecast for 2013 GDP growth has also been cut by 0.6 percentage points to 1.4%. Both cuts represent the largest downward revisions for a major Western economy contained within the IMF's latest World Economic Outlook, published today. The body now foresees a shallower recession in Spain this year - albeit with GDP still contracting by some 1.5% - and German growth of 1% over the same period, but has revised down 2013 projections for most major eurozon...