IMF cuts economic growth forecast The International Monetary Fund (IMF) has warned that the cost of living crisis and Russia’s invasion of Ukraine will slow Britain's economic recovery from the pandemic. Warning that inflation is set to remain elevated for longer than previously expected, it has cut growth forecasts for the UK. In its latest World Economic Outlook update, the IMF said it expects Britain’s GDP to grow by 3.7% this year, with this down on the 4.7% it predicted at the start of the year and the 5% it forecast in October. It also downgraded its expectations for 2023 to 1.2%, marking a decline on the 2.3% predicted in January. Official figures show GDP increased by 0.1% in February, slowing from the 0.8% posted in January. The economy grew 7.4% in 2021, having shrunk 10% in 2020 due to the pandemic. The IMF has also cut its global growth outlook for 2022 to 3.6% from 4.4%, warning that conditions have “worsened significantly” since its January update. Its report said: “Global economic prospects have been severely set back, largely because of Russia's invasion of Ukraine,” adding that “the crisis unfolds even as the global economy has not yet fully recovered from the pandemic.” The IMF also flagged that inflation was now a "clear and present danger" in many countries.