UK economy to avoid recession but inflation still a worry, IMF says

By PAN PYLAS
Associated Press

LONDON (AP) — The International Monetary Fund says the British economy will avoid falling into recession this year. In upgraded growth forecasts released Tuesday, the Washington-based IMF said domestic demand had proven more resilient than anticipated in the face of a surge in energy costs. The IMF now thinks the British economy will grow by 0.4% this year, up from its previous prediction of a 0.3% decline. The forecast aligns with that from the Bank of England, which also upgraded its economic outlook this month. But the IMF also says inflation is likely to remain stubbornly high over the coming years.