BRITAIN'S economic recovery efforts have been boosted after the International Monetary Fund (IMF) hiked its 2013 growth forecast.
The global organisation is predicting growth of 0.9% this year, up by 0.3% since its last report in April when it downgraded the UK's prospects.
The move will provide a boost for Chancellor George Osborne's deficit-busting plans as it almost entirely reverses the IMF's earlier growth forecast cuts, which came amid warnings over austerity. It sparked a war of words with the Treasury in April when it slashed its growth outlook and said Mr Osborne should consider changing his plans in the light of "lacklustre" private demand.
But the IMF's latest World Economic Outlook reveals a brighter picture for the UK following a raft of recent encouraging reports, with growth of 1.5% also pencilled in for next year.
It said global growth would "remain subdued" as it cut its forecast for world output by 0.2% this year and next, to 3.1% and 3.8% respectively.
A Treasury spokesman said: "The IMF has confirmed that the UK economy is moving from rescue to recovery."
Shadow chancellor Ed Balls said: "After three years of flatlining, the IMF believes Britain's economic recovery will remain weak."
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