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UK will be fastest growing G7 economy in 2022 - IMF

Oxford Street, London / © Jonathan Chng

LONDON (WNI) — The latest economic data released this week by the IMF reveals that Britain is set to grow at a faster pace than all other G7 nations.

UK GDP growth is forecast at 4.7% in 2022, ahead of the U.S. which is expected to grow at 4% while countries including Germany and France will grow at 3.8% and 3.5% respectively.

The IMF’s latest data however points to a cooling down of UK GDP this year as Omicron, persistently high inflation and a global chip shortage could impact growth in the near future. The latest figures represent a 0.3% downward revision for UK GDP expansion this year, but still reveal an optimistic outlook for the world’s 5th largest economy.

Britain, like much of the rest of the world is facing increasing pressures as rising energy costs hit consumer spending. However, the UK’s currently forecasted GDP growth brings it ahead of the Euro economic area average of 3.9% for 2022, and will outpace average global economic growth by 0.3%.

After leaving the European Union and the Single Market, economic analysts have been taking a closer look at Britain’s performance on trade in the post-Brexit era. Britain recently began negotiations with India on a comprehensive new free trade deal that could bring about new opportunities outside of the European Union for its future global trading ambitions. In addition to its talks with India, Britain is aiming to gain entry to the CPTPP by the end of 2022. It is the first non-founding member to apply to the 11-member Trans-Pacific trade bloc.