IMF Economic Outlook

Debate between James Cartlidge and Greg Clark

Tuesday 31st January 2023 Commons Chamber

[James Cartlidge]

I did not question the IMF forecast—that is not correct. I simply quoted what the IMF said, that cumulative growth over the 2022 to 2024 period is predicted to be higher than in Germany and Japan and at a similar rate to the US.

[Greg Clark (Tunbridge Wells) (Con)]

I remind the Minister and the shadow Chancellor that forecasts are just that. They are subject to substantial revision. I remember in 2012 the IMF downgraded the forecast, only substantially to upgrade it the following year. The key thing is to have a long-term approach. Will the Minister confirm that the Government will build on the Prime Minister’s Mais lecture and the Chancellor’s excellent speech on Friday and complement that with a clear industrial strategy so that investors can have a clear view of the Government’s business policy, as countries such as the US, Japan and South Korea are doing?

[James Cartlidge]

My right hon. Friend speaks with great expertise as both a former Secretary of State and a Select Committee Chair, and he is absolutely right. Whatever forecasts say, we have a clear strategy for long-term growth in this country that comes from supporting high-growth sectors. I am glad he mentioned the Chancellor’s speech on Friday, which spoke about the fact that we are only the third economy in the world with $1 trillion tech sector—I know the shadow Chancellor does not like that fact, but we are—and we should be proud of that. Of course we want to build further on that. That is how we will deliver strong, sustainable growth in every part of the United Kingdom.