Released on: August 17, 2008, 11:39 pm

Press Release Author: Gracy

Industry: Financial

Press Release Summary: International Monetary Fund has predicted the slowdown of
economic growth of United Kingdom for the coming two years.

Press Release Body: London (Longdog Finance) August 12, 2008: International Monetary
Fund has predicted that the coming two years in the history of United Kingdom
economy will be marked by the slow economic growth rate. According to IMF, year 2008
will see the growth of 1.4% while year 2009 will see the growth of only 1.1% .


This statement from the most widely known finance organisation comes after after the
July prediction, which claimed that UK economy will see the growth of 1.8% in 2008,
and 1.7% in 2009. The difference is quite evident since it clearly indicates the
turbulent changes over the past few months in the UK economy.


The inflation rate of 3.8% is said to be the chief reason behind the sluggish
economic growth. The latest prediction from IMF has given a terrific jolt to the
expectations of UK government which was hoping that the rate of growth would be
somewhere around 2.5%, though many of the independent forecaster also predicted the
growth of only 1.4 %. The above statement has multiplied the problems for the
government of UK, who is already facing tough times.


In response to this, government has been employing various methods to get out of
this situation. But finance experts have suggested the government to take the help
of short term measures so that the side-effects of these measures can also be
overcome in a very short span of time. IMF has also suggested various measures to
bring back peace in the turbulent phase of economy. But at the same, it also
expressed that the BoE (Bank of England) should be awarded with sufficient authority
and decision making ability, if it (Government of UK) want the suggested measures to
work effectively. Suppressed wage prices, export demands, poor second quarter growth
and the increasing unemployment has resulted into the worsening of situation. As a
result, BoE is supposed to keep the rate of interest at 5% on Thursday.

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