LONDON (Reuters) – The International Monetary Fund raised its forecast for British economic growth, which is set to outpace the euro zone this year after its slump in 2020 but is unlikely to regain its pre-pandemic size until some time in 2022.
The IMF said Britain’s economy would grow by 5.3% in 2021, up from a previous forecast of 4.5% it made in January.
Britain has suffered Europe’s highest COVID-19 death toll and its economy shrank by almost 10% last year, the worst performance among the region’s big economies except for Spain.
But it has moved quickly with its vaccination programme. Almost half the total population of the United Kingdom has had a first jab compared with less than 15% in Germany and France.
The IMF forecasts published on Tuesday predicted growth of 4.4% for the euro zone in 2021 and 3.6% for Germany, while France was expected to show a 5.8% expansion.
However, the IMF forecasts do not take into account new lockdown measures announced by France and other countries in continental Europe in recent weeks.
Britain is in the process of easing its third lockdown which began in January.
Both Britain and the euro zone will take longer to recover from the economic hit from COVID than the United States or Japan, which are both on track to return to pre-crisis levels of output this year, the IMF said.
The 0.8 percentage-point upgrade for the U.K. economy was stronger than increases of 0.1 and 0.3 percentage points for Germany and France respectively, but less than a 1.2 percentage-point improvement for struggling Italy.
For 2022, the IMF raised its forecast to British economic growth slightly to 5.1% which would be the strongest expansion among Europe’s big economies next year, according to the Fund.
(Writing by William Schomberg; Editing by David Milliken)
OTTAWA – Statistics Canada says the country’s merchandise trade deficit narrowed to $1.3 billion in September as imports fell more than exports.
The result compared with a revised deficit of $1.5 billion for August. The initial estimate for August released last month had shown a deficit of $1.1 billion.
Statistics Canada says the results for September came as total exports edged down 0.1 per cent to $63.9 billion.
Exports of metal and non-metallic mineral products fell 5.4 per cent as exports of unwrought gold, silver, and platinum group metals, and their alloys, decreased 15.4 per cent. Exports of energy products dropped 2.6 per cent as lower prices weighed on crude oil exports.
Meanwhile, imports for September fell 0.4 per cent to $65.1 billion as imports of metal and non-metallic mineral products dropped 12.7 per cent.
In volume terms, total exports rose 1.4 per cent in September while total imports were essentially unchanged in September.
This report by The Canadian Press was first published Nov. 5, 2024.
