'Some optimism’ in global and UK economy reports IMF

Spain was the only European country to have its growth revised down

The International Monetary Fund (IMF) has revised its world economic growth forecasts for 2012 upwards to 3.5%, from a previous forecast of 3.3%.

Its predictions for the UK economy growth were also revised upwards from 0.6% to 0.8%.

However, it was noted that another eurozone crisis was still possible and that most major economies “still face major brakes in growth”.

As new unemployment figures released today have shown unemployment fall by 35,000 to 2.65 million, it was a slight boost for the coalition government after inflation unexpectedly crept up in Q1 of 2012.

The IMF said of the situation in the UK, “With inflation expected to fall below the 2% target amid weaker growth and commodity prices, the Bank of England can further ease its monetary policy stance”.