IMF downgrades UK growth forecast


The IMF has downgraded its forecast for UK economic growth.

The Fund expects growth of 1.6% this year, down slightly from its previous forecast of 1.7%. It expects growth to slow further next year, to 1.5%.

IMF chief Christine Lagarde said the economy was being held back by rising inflation and stagnant wages, which are squeezing spending power.

She also said uncertainty over the Brexit deal was causing UK firms to delay investment plans.

However, she said that the government had made "significant progress" in reducing the deficit.