LONDON: The International Monetary Fund said on Tuesday that it no longer expects Britain’s economy will fall into a recession this year, upgrading forecasts that it published last month.

The IMF said British gross domestic product was set to grow by 0.4% in 2023. In April, it forecast a contraction of 0.3%.

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The Fund said the improved outlook reflected the unexpected resilience of demand, helped in part by faster than usual pay growth, the fall in soaring energy costs and the normalisation of global supply chains.