IMF to cut 2012 UK growth forecast to -0.1%

The IMF is expected to cut its forecast for UK growth in 2012 by 0.3 percentage points this week, from 0.2% to -0.1%, as part of a series of downgrades.

UK growth in 2013 is also expected to be cut from 2% to 1.4%. German daily newspaper Handelsblatt having claimed it has been leaked the numbers ahead of this week's announcement. The newspaper said the IMF will downgrade its global growth forecast for this year and next. Global growth has been cut from 3.4% to 3.3% this year, and from 3.9% to 3.6% in 2013. The eurozone is expected to contract 0.4% in 2012 and grow 0.2% the following year. In April the IMF revised up its growth projection for the UK from 0.6% to 0.8%, but this was cut to 0.2% in July, amid concerns over a harsher...