IMF: We back Osborne’s cuts

first_imgMonday 27 September 2010 8:55 pm Show Comments ▼ Share whatsapp More From Our Partners Florida woman allegedly crashes children’s birthday party, rapes teennypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.com980-foot skyscraper sways in China, prompting panic and evacuationsnypost.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgKiller drone ‘hunted down a human target’ without being told tonypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgSidney Crosby, Alex Ovechkin are graying and frayingnypost.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comUK teen died on school trip after teachers allegedly refused her pleasnypost.comMatt Gaetz swindled by ‘malicious actors’ in $155K boat sale boondogglenypost.comBiden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comI blew off Adam Sandler 22 years ago — and it’s my biggest regretnypost.comMark Eaton, former NBA All-Star, dead at 64nypost.comFeds seized 18 devices from Rudy Giuliani and his employees in April raidnypost.comWhy people are finding dryer sheets in their IMF: We back Osborne’s cuts whatsapp THE International Monetary Fund (IMF) gave its full backing to the coalition government’s deficit reduction plans yesterday, announcing that the UK economy is on the mend after the longest and deepest recession of the post-war era.In its annual health check of the UK economy the IMF said the recovery was underway, unemployment had stabilised and the health of the financial sector had improved. Calling the government’s deficit reduction plan “appropriately ambitious” the IMF report said: “The government’s strong and credible multi-year fiscal deficit reduction plan is essential to ensure debt sustainability.” It added the plan “greatly reduces the risk of a costly loss of confidence in public finances and supports a balanced recovery.” Fiscal tightening would dampen short-term growth, said the report, but not stop it as other sectors of the economy emerged as drivers of recovery, supported by continued monetary stimulus.The backing of the IMF will come as a huge vindication of chancellor George Osborne’s proposals to cut public spending by £83bn in order to get the £155bn budget deficit under control. The chancellor will reveal where the cuts will come when he announces the results of the comprehensive spending review on 20 October.The chancellor welcomed the IMF report saying: “They have made it pretty clear that the deficit reduction plan that we have set out is essential for bringing about sustainability in our budget. It reminds us that if we divert from the course the new government has set out then we really will be heading back into a disastrous period of economic instability for Britain.”The report puts the new Labour leader, Ed Miliband, under immediate pressure ahead of his conference speech today. Earlier this week the Labour leader described the government’s policies as “economically dangerous” and called for deficit reduction “at a cautious pace in a way that is going to help our economy, not hinder it”.But while there were risks to economic recovery given the “continued fragility of confidence and “signs of renewed housing market weakness,” the IMF predicted GDP growth would be two per cent in 2011, rising gradually to 2.5 per cent the following year. Inflation should also fall back to the government’s two per cent target by early 2012.In another boost for the government the IMF said financial sector reform ”would be crucial to move to a safer system that featured stronger capital and liquidity buffers, supported by tighter regulation and supervision. KCS-content Tags: NULLlast_img read more