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dipsydoodle

(42,239 posts) Wed May 22, 2013, 07:30 AM May 2013

IMF stops short of calling for George Osborne to temper austerity

Source: Guardian

The International Monetary Fund has stopped short of calling for George Osborne to temper his deficit-reduction programme, amid "nascent signs of momentum" in the UK's recession-scarred economy.

At the IMF's spring meetings in Washington last month, Osborne faced pointed criticism from the fund's officials over his determination to press ahead with spending cuts despite the flat-lining economy.

But the IMF's experts appear to have softened their view, after spending a fortnight in London talking to officials at the Bank of England and the Treasury – and amid signs of life from the economy, including news that GDP expanded by 0.3% in the first three months of 2013.

In a carefully worded statement published on Wednesday, the IMF said that the £10bn-worth of spending cuts and taxes planned for the coming year would "pose headwinds to growth". Instead of calling for a radical rethink, however, it acknowledged that the Treasury faces a "dilemma".

Read more: http://www.guardian.co.uk/business/2013/may/22/imf-george-osborne-austerity-annual-check

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IMF stops short of calling for George Osborne to temper austerity (Original Post) dipsydoodle May 2013 OP

Why didn't they talk to anyone who is being hurt by "austerity" . . . another_liberal May 2013 #1

The Guardian seems to have changed the wording of the story muriel_volestrangler May 2013 #2

another_liberal

(8,821 posts)

1. Why didn't they talk to anyone who is being hurt by "austerity" . . .

Reply to dipsydoodle (Original post)

Wed May 22, 2013, 12:11 PM

May 2013

Last edited Wed May 22, 2013, 04:41 PM - Edit history (1)

I wonder why they didn't talk to anyone who is being hurt by IMF-supported austerity, you know, people who are unemployed or elderly and living on a pension, any poor people generally?

This is just another example of fatcat bankers talking to fatcat bankers about what is best for fatcat bankers. Oh yeah, they also got input from "Technocrats." A "Technocrat" is what you call a fatcat banker when he takes a temporary job with the government.

muriel_volestrangler

(101,350 posts)

2. The Guardian seems to have changed the wording of the story

Reply to dipsydoodle (Original post)

Wed May 22, 2013, 12:41 PM

May 2013

It no longer says "stopped short" (though I can see people discussing that phrase in the comments). It now reads:

IMF calls for UK government to stimulate growth

International Monetary Fund says UK economy still 'still a long way from a strong and sustainable recovery' and fears impact from forthcoming spending cuts

The International Monetary Fund has called on the UK government to take more action to boost the economy, which it warns is "still a long way from a strong and sustainable recovery".

It said the £10bn-worth of spending cuts and taxes planned for the coming year would be a "drag on growth" and urged the government to do more to stimulate the economy.

The fund's deputy managing director David Lipton said Britain should bring forward investment on infrastructure and defer some near-term spending cuts to kickstart the economy.

"In a range of policy areas, the government should be more supportive of growth. What is important now is not to make a mistake today and presume that all will be well with the economy some years from now. I think it's important to get started on infrastructure projects that will support the economy." He said that would allow the government to push back some of the cuts and bring forward more supportive measures.
...

The BBC is currently reporting it with:

IMF: UK 'long way from recovery'

The UK economy is still a long way from "a strong and sustainable recovery", the International Monetary Fund (IMF) has warned.

In its concluding statement on its mission to the UK, the IMF said austerity measures were acting as a drag on the economy.

The government could do more to offset the negative impact of austerity with infrastructure spending, it said.

George Osborne said the UK would not "duck its economic challenges".
...
http://www.bbc.co.uk/news/business-22623519

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