UK economy will remain under pressure

Exports to Britain are likely to remain under pressure warns the International Monetary Fund (IMF). “Economic recovery in the UK continues to be slow and fragile, as domestic deleveraging pressures remain and external demand is weak,” says the IMF in a report on the UK economy by its board of directors. “Economic activity is projected to recover going forward, but the pace of expansion is expected to be weak relative to the scale of underutilised resources,” it adds. Challenges include a “stubborn” inflation rate above the 2% target, and financial stress in the neighbouring euro region. “Executive directors noted that, despite recent signs of increasing momentum, growth prospects remain weak.