IMF urges UK govt. to ease austerity drive
The head of the International Monetary Fund (IMF) Christine Lagarde has urged British Chancellor George Osborne to rethink his austerity plans amid weak economic figures.
Lagrade, who previously supported the country’s deficit reduction strategy, said the IMF’s stance has changed as a result of Britain’s poor performance on economy.
"We have said that should growth abate, should growth be particularly low, then there should be consideration to adjusting by way of slowing the pace. This is nothing new,” she said.
According to the reports, the IMF team would conduct an annual health check on the UK’s economy when it arrives in London next month.
The Office for National Statistics (ONS) will then release growth figures for the first quarter of 2013. The figures will reveal whether the country has slipped into an unprecedented triple-dip recession.
Earlier this week, the IMF slashed Britain’s economic forecast for the second time this year.
The fund cut its growth outlook for the country to 0.7 percent this year and 1.5 percent in 2014, and urged Osborne to consider looser budget policy to rescue growth and bring the public finances under control.