Growth and Wealth
The IMF has this week downgraded its growth forecasts for the UK (and notably also for the US), following weaker than expected data in Q1 this year. The UK full year forecast is now placed at 1.7%, falling behind the Euro area (1.9%), amid a lack of progress in the Brexit negotiations. More generally the IMF points to a decreased reliance on the US and the UK to drive sustainable global growth or more reliance on Far Eastern economies. However, in terms of wealth, assessed by GDP at purchasing power parity, the US ($57k) and the UK ($42k) still sit comfortably ahead of the likes of China ($15k – broadly equivalent to the global average), in a table dominated by the Western economies.