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Britain is no longer expected to suffer a recession this year, nor will it have the weakest economic growth in the group of seven leading industrialised economies, the International Monetary Fund (IMF) said today.

Unveiling a dramatic upgrade to its outlook for Britain, the Fund, which previously predicted Britain would face the worst 2023 of any G7 nation, said that in fact the UK would grow by 0.4% this year.

While this remains weak, it is nonetheless stronger than the 0.7% contraction previously forecast and stronger than the “near zero” growth rate the IMF has pencilled in for Germany.

The news, contained in the IMF’s latest individual assessment of the UK economy, its so-called Article IV report, will likely be welcomed by the chancellor, following a stream of negative forecasts from major institutions.

However, the Fund said that the impact of the cost of living crisis will continue to cause pain across the economy.

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Last month Jeremy Hunt insisted he will prove the IMF wrong

“Given transmission lags,” it said, “sizeable rate [interest rate] hikes implemented since August are expected to have their peak impact on demand and inflation from the second half of 2023.”

It added that interest rates – already at 4.5% having risen twelve successive times since late 2021 – would have to rise even further.

More on Uk Economy

Read more:
Grocery inflation eases for second consecutive month
Government borrowing sharply higher than expected

“Inflation is projected to return to the 2% target only by mid-2025, six-months later than in staff’s April forecast, and risks to this trajectory are tilted to the upside.

“Accordingly, some further monetary tightening will likely be needed, and rates may have to remain high for longer to bring down inflation more assuredly.”

Chancellor Jeremy Hunt said: “Today’s IMF report shows a big upgrade to the UK’s growth forecast and credits our action to restore stability and tame inflation.

“It praises our childcare reforms, the Windsor Framework and business investment incentives.

“If we stick to the plan, the IMF confirm our long-term growth prospects are stronger than in Germany, France and Italy… but the job is not done yet.”

Despite volatile times for the global economy, the latest assessment casts further doubt on the fund’s forecasting record.

At a news conference to explain its findings, IMF Kristalina Georgieva said: “When you take a good look at the projections done by the Bank of England, consensus projections and the IMF, we’re actually slightly less pessimistic than the others have been.

We have gone through a very turbulent time over the last years. We have experienced shock upon shock upon shock and that has created exceptional uncertainty. I actually think our staff , my colleagues, deserve credit for being agile in how we look at changing conditions and being fast to adjust projections so we can give as clearer picture as we can at the time, that you would agree is the foggiest we have seen in many decades.”

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UN Security Council backs Trump peace plan for Gaza

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UN Security Council backs Trump peace plan for Gaza

The United Nations Security Council has passed a US resolution which endorses Donald Trump’s peace plan for Gaza.

Russia, which had circulated a rival resolution, abstained along with China on the 13-0 vote.

The resolution endorses the US president’s 20-point ceasefire plan, which calls for a yet-to-be-established Board of Peace as a transitional authority that Mr Trump would head.

Read more: What does Trump’s Gaza peace plan look like?

US ambassador Mike Waltz said the resolution was “historic and constructive”, but it was “just the beginning”.

“Today’s resolution represents another significant step towards a stable Gaza that will be able to prosper and an environment that will allow Israel to live in security,” he added.

Pic: Reuters
Image:
Pic: Reuters

The proposal gives no timeline or guarantee for an independent Palestinian state, only saying “the conditions may finally be in place” after advances in the reconstruction of Gaza and reforms of the Palestinian Authority – now governing parts of the West Bank.

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It also says that the US “will establish a dialogue between Israel and the Palestinians to agree on a political horizon for peaceful and prosperous co-existence”.

The language on statehood was strengthened after Arab nations and Palestinians pressured the US over nearly two weeks of negotiations, but it has also angered Israeli Prime Minister Benjamin Netanyahu.

He has vowed to oppose any attempt to establish a Palestinian state, and on Sunday pledged to demilitarise Gaza “the easy way or the hard way”.

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From October: How will peace plan unfold?

Hamas: International force is ‘in favour of’ Israel

In a statement rejecting the resolutions’ passing, a Hamas spokesperson said that it “falls far short of the political and humanitarian demands and rights of our Palestinian people”.

“The effects and repercussions of this war continue to this day, despite the declared end of the war according to President Trump’s plan,” they added.

“The resolution imposes an international trusteeship mechanism on the Gaza Strip, which our people, their forces, and factions reject.”

The spokesperson then said that “assigning the international force with tasks and roles inside the Gaza Strip, including disarming the resistance, strips it of its neutrality, and turns it into a party to the conflict in favour of the occupation”.

Read more:
Trump asks Israeli president to ‘fully pardon’ Netanyahu
Inside Jordan warehouse holding Gaza aid ‘refused entry by Israel’

The Palestinian Authority, however, issued a statement welcoming the resolution and said it is ready to take part in its implementation.

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Former Bangladesh PM Sheikh Hasina sentenced to death after lethal crackdown on uprising

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Former Bangladesh PM Sheikh Hasina sentenced to death after lethal crackdown on uprising

Bangladesh’s ousted prime minister Sheikh Hasina has been sentenced to death.

It comes after the 78-year-old was found guilty of ordering lethal force in a crackdown on a student-led uprising that ended her 15-year rule.

The former leader, who is now exiled in India, was tried in absentia by the Dhaka-based International Crimes Tribunal (ICT) after the United Nations said up to 1,400 people may have been killed in last year’s violence.

Bangladesh‘s health adviser in the interim government said more than 800 people were killed and about 14,000 were injured.

Following a months-long trial, Hasina got a life sentence under charges for crimes against humanity and the death sentence for the killing of several people during the uprising.

In a statement released after the verdict, Hasina said the ruling was “biased and politically motivated” and “neither I nor other political leaders ordered the killing of protesters”.

“I am not afraid to face my accusers in a proper tribunal where evidence can be weighed and tested fairly,” she added.

“I wholly deny the accusations that have been made against me in the ICT. I mourn all of the deaths that occurred in July and August of last year, on both sides of the political divide. But neither I nor other political leaders ordered the killing of protesters.”

The students initially started protesting over the way government jobs were being allocated, but clashes with police and pro-government activists quickly escalated into violence.

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August 2024: Protesters celebrate Sheikh Hasina’s resignation

The court revealed conversations of Hasina directing security officers to drop bombs from helicopters on the protesters.

She also permitted the use of lethal weapons, including shotguns at close range for maximum harm, the court was told.

Hasina, who previously called the tribunal a “kangaroo court”, fled to India in August 2024 at the height of the uprising.

She is the daughter of Sheikh Mujibur Rahman, who led the country to independence.

Hasina is also the aunt of former UK government minister, Tulip Saddiq, who resigned from her Treasury job at the start of this year.

Ms Siddiq had faced calls to step down over links to her aunt and was also said to be facing a corruption trial in Bangladesh.

She told Sky News in August the accusations were “nothing more than a farce” and said she had never been contacted by the Bangladeshi authorities.

The ICT, Bangladesh’s domestic war crimes court located in the capital, delivered its four-hour verdict on Monday amid tight security.

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What was behind the protests?

The packed courtroom cheered and clapped when the sentence was read out.

The tribunal also sentenced former home minister Asaduzzaman Khan – also exiled in India – to death.

A third suspect, a former police chief, was sentenced to five years in prison as he became a state witness against Hasina and pleaded guilty.

The ruling is the most dramatic legal action against a former Bangladeshi leader since independence in 1971 and comes ahead of parliamentary elections expected to be held in February.

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July 2024: Bangladesh protest has ‘become a war’

Foreign ministry officials in Bangladesh have called on India to hand over the former prime minister, adding it was obligated to do so under an existing treaty between the two nations.

India’s foreign ministry said it had noted the verdict concerning Hasina and “remained committed” to the people of Bangladesh.

“We will always engage constructively with all stakeholders to that end,” the ministry added in a statement.

During the verdict, protesters had gathered outside the former home-turned-museum of Hasina’s late father demanding the building be demolished.

Read more from Sky News:
Hundreds of tonnes of ‘revolting’ waste dumped next to river
Arctic air to bring risk of ice and snow to the UK this week

Protesters gather outside the former home of Sheikh Hasina's late father, Sheikh Mujibur Rahman. Pic: AP
Image:
Protesters gather outside the former home of Sheikh Hasina’s late father, Sheikh Mujibur Rahman. Pic: AP

Police used batons and stun grenades to disperse the crowd.

Paramilitary border guards and police have been deployed in Dhaka and many other parts of the country, while the interim government warned any attempt to create disorder will be “strictly” dealt with.

Hasina’s Awami League party called for a nationwide shutdown in protest at the verdict.

The mood in the country had been described as tense ahead of Monday’s ruling.

The protests escalated during the summer of 2024. Pic: AP
Image:
The protests escalated during the summer of 2024. Pic: AP

Pic: AP
Image:
Pic: AP

At least 30 crude bomb explosions and 26 vehicles were set on fire across Bangladesh during the past few days.

Local media said two people were killed in the arson attacks, according to the Associated Press.

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Former Bangladesh PM Sheikh Hasina sentenced to death for crimes against humanity

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Former Bangladesh PM Sheikh Hasina sentenced to death after lethal crackdown on uprising

Sheikh Hasina, Bangladesh’s ousted prime minister, has been sentenced to death after being convicted of crimes against humanity.

It follows a months-long trial in the country that found her guilty of ordering a deadly crackdown on a student-led uprising last year.

The former leader, exiled in India, was tried in absentia after the United Nations said up to 1,400 people may have been killed in the violence.

Bangladesh’s health adviser under the interim government said more than 800 people were killed and about 14,000 were injured.

The students initially started protesting over the way government jobs were being allocated, but clashes with police and pro-government activists quickly escalated into violence.

The court revealed conversations of Hasina directing security officers to drop bombs from helicopters on the protesters.

She also permitted the use of lethal weapons, including shotguns at close range for maximum harm, the court was told.

Hasina, who previously called the tribunal a “kangaroo court”, fled to India in August 2024 at the height of the uprising, ending 15 years of rule.

In a statement released after the verdict, Hasina said the ruling was “biased and politically motivated” and “neither I nor other political leaders ordered the killing of protesters”.

“I am not afraid to face my accusers in a proper tribunal where evidence can be weighed and tested fairly,” she added.

Please use Chrome browser for a more accessible video player

August 2024: Protesters celebrate Sheikh Hasina’s resignation

The 78-year-old is the daughter of Sheikh Mujibur Rahman, who led the country to independence.

The International Crimes Tribunal, Bangladesh’s domestic war crimes court located in the capital Dhaka, delivered its four-hour verdict amid tight security.

Hasina received a life sentence under charges for crimes against humanity and the death sentence for the killing of several people during the uprising.

Please use Chrome browser for a more accessible video player

What was behind the protests?

The packed courtroom cheered and clapped when the sentence was read out.

The tribunal also sentenced former home minister Asaduzzaman Khan – also exiled in India – to death.

A third suspect, a former police chief, was sentenced to five years in prison as he became a state witness against Hasina and pleaded guilty.

The ruling is the most dramatic legal action against a former Bangladeshi leader since independence in 1971 and comes ahead of parliamentary elections expected to be held in February.

Please use Chrome browser for a more accessible video player

July 2024: Bangladesh protest has ‘become a war’

Foreign ministry officials in Bangladesh have called on India to hand over the former prime minister, adding it was obligated to do so under an existing treaty between the two nations. India has not yet made any response.

Paramilitary border guards and police have been deployed in Dhaka and many other parts of the country, while the interim government warned any attempt to create disorder will be “strictly” dealt with.

It comes after Hasina’s Awami League party called for a nationwide shutdown as part of a protest against the verdict.

The mood in the country had been described as tense ahead of Monday’s ruling.

The protests escalated during the summer of 2024. Pic: AP
Image:
The protests escalated during the summer of 2024. Pic: AP

Pic: AP
Image:
Pic: AP

At least 30 crude bomb explosions and 26 vehicles were set on fire across Bangladesh during the past few days.

Local media said two people were killed in the arson attacks, according to the Associated Press.

Hasina is also the aunt of former UK government minister, Tulip Saddiq, who resigned from her Treasury job at the start of this year.

Read more from Sky News:
Hundreds of tonnes of ‘revolting’ waste dumped next to river
Arctic air to bring risk of ice and snow to the UK this week

Ms Siddiq had faced calls to step down over links to her aunt and was also said to be facing a corruption trial in Bangladesh.

She told Sky News in August the accusations were “nothing more than a farce” and said she had never been contacted by the Bangladeshi authorities.

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