Chancellor Jeremy Hunt. image: BBC
Chancellor Jeremy Hunt claims the British economy is “back” and that his growth strategy has been supported at the International Monetary Fund gathering in Washington.
Mr. Hunt, who succeeded Kwasi Kwarteng as the head of the International Monetary Fund (IMF), faced criticism as his predecessor left the previous IMF meeting in October early.
Mr. Hunt, however, defended his leadership by stating that he was putting the British economy on the right track, a sentiment that was echoed by other finance ministers.
Despite Mr. Hunt’s positive outlook, recent data revealed that the UK economy failed to grow in February. In fact, the IMF projected that the UK economy would shrink by 0.3% in 2023, making it one of the poorest performing among major global economies.
When questioned about whether the UK’s lackluster performance undermined his optimistic stance, Mr. Hunt remained steadfast, citing feedback from other finance ministers who believed that Britain was back on track.
Nevertheless, the UK’s economic recovery has been sluggish, with the economy only recently returning to its pre-pandemic size after months of industrial disruptions, surging prices, and labor shortages.
The uncertain situation in the banking sector, triggered by the collapse of three US banks and UBS’s emergency takeover of Credit Suisse, could potentially cast a shadow over the UK’s outlook, as it heavily relies on financial services.
Despite this, Mr. Hunt, a government official, reassured that the UK possesses a robust and resilient banking system, in a much better state than it was prior to the 2008 financial crisis.
When asked about potential reforms to financial service regulations, Mr. Hunt clarified that the government’s intention was not to disregard the lessons learned from the financial crisis.
While considering reforms, the aim is to maintain important protections that have been implemented.
However, he acknowledged that regulations may need to adapt to accommodate the growth of the UK’s tech and life sciences sectors, which now boast a significant number of high-growth companies with unique banking needs, distinct from a decade ago.