The International Monetary Fund gave one of its largest downgrades for a developed country, when it lowered its growth forecast figures for Britain in 2011 from 2.5% growth to 2.1% growth.

The figures were less than the independent Office of Budget Responsibility (OBR) which predicts a 2.3% growth in 2011. Recruitment agencies would have also been concerned by the OBR prediction that 600,000 public sector jobs could go.

The IMF added the global economy is actually recovering faster than initially expected and even increased its forecast for growth in the US and China. The problem they stressed was with Europe’s debt crises which will delay’s the continent’s growth.

IMF has asked governments to get to grips with their banks and push ahead with financial reforms. This is to encourage the flow of credit to the economy.

In response to this downgrade view, it is of course a concern but it is on the back of making fiscal changes that will hopefully tackle the debt in Britain. A catch 22 I suppose, but from my point of view this strategy will hopefully reward Britain in the future.