British Finance Minister Jeremy Hunt said that the British economy is “back,” according to what was reported by the British Broadcasting Corporation (BBC). Hunt said his strategy to develop the economy further was also welcomed at the International Monetary Fund meeting in Washington.
The British Treasury Secretary said that the International Monetary Fund believes that it “puts the British economy back on the right track.” This is a very different picture than during the previous IMF meeting in October. His predecessor, Kwasi Kwarteng, left the meeting prematurely amid a barrage of criticism.
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However, the latest figures do not show that the British economy grew in February, the BBC reported. Earlier this week, the International Monetary Fund also predicted that the British economy would contract by 0.3 percent in 2023. This would make it one of the worst-performing major economies in the world.
According to Hunt, “it is other finance ministers who are telling us that Britain is back.” He said this in response to a question about whether the UK’s current economic performance undermines his positive message. After months of strikes, rapidly rising prices and labor shortages, the British economy has only just returned to pre-pandemic levels.
The Finance Minister stated that it was important to prevent inflation from being exacerbated by wage increases. Hunt said Britain had avoided a recession “so far”. “I hope for faster growth and lower inflation in the coming months,” Hunt said. Economic growth should be stimulated by measures to help companies hire more workers and increase investment.
Until I trust
However, confidence in the British economy took a hit last year due to Prime Minister Truss’s short-lived government. Former Finance Minister Kwarteng presented an economic strategy that included major tax cuts without explaining how they would be financed. It is also possible that the current banking crises will hinder the growth of the British economy.
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However, Hunt believes the UK has a “very strong and resilient banking system” and is in a better position than it was before the 2008 financial crisis. “I am confident in the resilience of our banking system,” Hunt said.
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