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IMF Cuts U.K. Forecast, Says Fiscal Squeeze May Need to Slow

The International Monetary Fund cut its U.K. economic growth forecast for this year and next and said the government may need to consider delaying some of its deficit-reduction measures if conditions deteriorate.

Gross domestic product will rise 1.1 percent this year and 1.6 percent in 2012, the Washington-based IMF said in its World Economic Outlook today, cutting a previous projection for 1.5 percent and 2.3 percent respectively.