The IMF has praised George Osborne on his plans of reducing public deficit and the news could not have been timed better with stats confirming the British economy grew in its second quarter by its fastest rate for nine years.
Caution has been raised with the remainder of the year, with tightening of fiscal policies and the slashing of public spending. It would be expected that Gross Domestic Product will be reduced.
Recruitment agencies dealing with the public sector would have noticed the drop in demand for staff but George Osborne has already pointed to the IMF report, stating it was a “very welcome endorsement” of the strategy implemented. Although Labour’s view, now led by Ed Miliband, believes the strategy to reduce the deficit is too soon.
My view on this is that having IMF approval is almost like getting approval from your parents. It is not that we need to be told we are doing things correct or even if this is the best approach to tackle the deficit but it does give some reassurance that they too believe this is the best course of action. I believe the next 6 – 8 months will give crucial signs of how the economy is coping and only till we see the scars of war can we recognise if we should continue on this path or not.
