The International Monetary Fund (IMF) has lifted its economic growth forecast for Britain from 0.7 per cent to 0.9 per cent. Although an upward revision of 0.2 per cent is modest, surely this means that the UK economy is on course to grow at a faster pace than expected this year, despite the global growth estimate being cut to 3.1 per cent.
This news comes hand in hand with AXA Business Insurance’s recent Optimism Index survey, revealing that 37 per cent of UK SMEs are more optimistic about their business than a year ago. Surveys in recent days have also reported that the housing market is roaring back to life and consumers are feeling confident enough to spend more at the shop.
A treasury spokeswoman said: the IMF has confirmed that the UK economy is moving from rescue to recovery, revising its growth forecast for this year. But the IMF again warns of the continued risks to the global economy, showing that the recovery cannot be taken for granted.
Indeed, we still have a prolonged eurozone recession and US spending cuts to contend with, restricting Britain’s GDP growth in 2014. None the less, the IMF forecast was welcomed by the government, who predicted growth might be too weak to cut unemployment or revive manufacturing investment.
“Businesses up and down the country will need to adopt innovative and resourceful measures in their approach to customers and suppliers in order to ride the crest of the economic wave,” said Vince McLoughlin, Partner at Russell New.
After all, UK SMEs are the “lifeblood of our economy and the government’s strapline of ‘Britain is very much now open for business’ is now looking more realistic.” Now is the time for SMEs to be creative get online to be spread your company name and brand.