IMF warns of UK’s strong head winds.
The IMF has warned that Government austerity measures and high levels of consumer debt pose “strong headwinds” for the UK’s economic recovery.
According to reports, growth will be “restrained” to 1.7% in 2011 and 2.3% in 2012.
This comes on top of the Bank of England’s governor Mervyn King’s comments that Consumer Price Index inflation is likely to rise above 5% this year, with higher than forecast energy prices hitting consumers and pushing up forward projections.
According to analysis by Capital Economics, the Bank believes GDP will grow by “just below 2% this year and around 2.5% in 2012” .