Slowing economic growth and a FTSE record high can coexist – here’s how

The blue-chip Footsie has closed at an all-time high while the UK's economy is set to shrink

• Full story: FTSE 100 hits record high
• PM's message: workers' doom loop, wealth's boom loop

The UK will be the only G7 country to see its economy shrink this year, the International Monetary Fund predicted this week.

The stock market, on the other hand, is doing just fine. Almost five years after its last closing high, the FTSE 100 index hit a new one on Friday.