The International Monetary Fund has revised up its growth forecast for the UK this year, but pencilled in a hefty downgrade for 2018 as the Fund expects the economic pain of Brexit to be delayed rather than avoided.In its latest World Economic Outlook, the IMF projects 2017 growth for Britain of 1.5 per cent, up from its 1.1 per cent forecast from October,but its projection forin 2018 is slashed to 1.4 per cent, down from 1.7 per cent previously.The 2017 forecast is roughly in line with the forecasts of the Bank of England and the Office for Budget Responsibility, which both project growth of 1.4 per cent this year.The IMF noted that growth in the UK since the Brexit referendum has"held up better than expected". The Fund's managing director had warned before the vote that the possible economic consequences ranged from "pretty bad, to very, very bad" and flagged the possibility of a technical recession.Brexit pain postponedIn October,Ms Lagarde insisted it was the IMF's jobs to point out economic risks as it saw them.And Maurice Obstfeld, the IMF's chief economist, on Mondaycontinued to flag dangers ahead for the UK."Britains terms of exit from the European Union remain unsettled and the upcoming national electoral calendar is crowded, with possibilities of adverse economic repercussions, in the short and longer terms," he said.The ONS says UK GDP grew by 0.6 per cent in the third quarter of the year and surveys suggest growth of 0.5 per cent in the final three months. That would take full year growth to around 2.1 per cent.Prime MinisterTheresa May is expected to trigger the two-year Article 50 divorce proceedings in March.The OBR isprojecting quarterly growth to slow to 0.3 per cent in the first quarter and 0.2 per cent in the second quarter.Notwithstanding the IMF's forecast slowdown, the UK's growth in 2017 would be higher than that of Germany (1.5 per cent) and France (1.3 per cent).Britain's 2018 growth, however, would be slightly lower.The IMF on Mondayalso pencils in a growth upgrade for the US in 2018 in anticipation of fiscal stimulus from the Trump administration.It now expects growth in the world's largest economy to be 2.5 per cent next year, up from 2.1 per cent previously.But the Fund stressed the uncertainty around what would materialise."At this early stage...the specifics of future fiscal legislation remain unclear, as do the degree of net increase in government spending and the resulting impacts on aggregate demand, potential output, the Federal deficit, and the dollar," said Mr Obstfeld.The IMF's 2017 and 2018global growth forecasts areunchanged at 3.4 per cent and 3.6 per cent respectively.Join the conversation about this storyNOW WATCH: A Harvard psychologist reveals the best way to fake it till you make it
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