IMF downgrades UK growth while European countries surge

The International Monetary Fund has lowered its growth forecast for the UK to 1.7% for 2017.

The organisation said a weaker-than-expected performance meant it was revising expectations from the 2% it predicted in April.

The US also had its economic forecast downgraded to 2.1% from 2.3%.

It comes in contrast to major European countries including Germany, France and Spain, where growth exceeded expectations.

The IMF's prediction that the global economy will grow by 3.5% in 2017 and 3.6% in 2018 remained unchanged, driven largely by China, Japan and the EU.

The Treasury said the report showed why securing the "very best deal" on Brexit with the European Union is "vitally important".

Prime Minister Theresa May has previously insisted that no deal is better than a bad deal when Britain quits the bloc.

Growth forecasts for the UK next year remain unchanged at 1.5%, according to the report.

The Treasury insisted "the fundamentals of our economy are strong".

A spokesman said: "This forecast underscores exactly why our plans to increase productivity and ensure we get the very best deal with the EU are vitally important."