Britain is set to be the fastest-growing economy in Europe next year, according to the IMF.
Having predicted a year ago that the UK would be the worst performing of Europe’s G7 members, the economic organisation said it was wrong and Britain has rebounded from recession faster than expected.
GDP will grow by 0.7% this year, says the IMF, upgrading the forecast from its previous prediction of 0.5%, with next year to see growth more than double to 1.5%.
Germany and France are tipped to grow by 1.3% next year.
It will be a major boost for the Labour government, although at that rate of growth, the UK would lag behind the US and Canada.
Chancellor Rachel Reeves said: “While it’s welcome that the IMF is forecasting growth to pick up this time, I am under no illusion to the scale of the challenge facing the economy and the inheritance this new government faces.”