IMF raises growth forecast for Britain as recovery proceeds

Britain got a double boost yesterday as its recovery from recession gathered more momentum and the IMF raised the country’s growth forecasts by more than for any other major economy.

Factories expanded production far more quickly than expected in February, UK statistics office data showed. Separate surveys showed a strong first quarter for companies and a long-awaited pick-up in wages.

The signs that Britain is finally starting to put the financial crisis behind it are well-timed for finance minister George Osborne. He visits the IMF this week, a year after the IMF urged him in vain to tone down his austerity programme to get growth going again. For the second time in six months, the IMF sharply raised its forecasts for growth, which it now sees hitting 2.9% in 2014 before easing to 2.5% next year. That was up from previous forecasts of 2.4% and 2.2%.