UK sole major euro economy downgraded by IMF

The IMF has cut growth expectations for the UK for this year to 1.7%, down 0.3% from its previous prediction in January.

Its forecast for UK economic growth in 2012 remains unchanged at 2.3%. In its latest World Economic Report, released last night, the IMF says financial conditions continue to improve after the global crisis, although they remain unusually fragile. The UK fares worst than other major European economies in the report, which shows Germany's projected growth revised up by 0.3% to 2.5% for this year, and by 0.1% to 2.1% the year after. Growth expectations for France are on track at 1.6% this year and 1.8% in 2012, unchanged since the January report. Italy's forecast has been scaled u...