The UK has received a report from the International Monetary Fund (IMF) which outlines possible risks to its period of economic strength continuing, despite being praised for the progress made so far.
In Friday’s publication, the IMF said: “The UK’s recent economic performance has been strong, and considerable progress has been achieved in addressing underlying vulnerabilities.
“Growth has exceeded that of the other major advanced economies, the unemployment rate has fallen substantially, employment has reached an historic high, the fiscal deficit has been reduced, and financial sector resilience has increased.”
According to the IMF’s outlook report, which contained an analysis of the worldwide economy, it stated that the UK is outperforming other major economies with a growth rate of 2.5 per cent in 2015 and a 2.2 per cent rate estimated for 2016.
During the July to September quarter, national unemployment fell by 5.3 per cent, which is the lowest figure for people out of work since 2008, which has provided a big boost to the Government’s policies.
Despite the positive news, the body issued a number of warnings regarding issues that need to be resolved if strong economic performance is to be continued.
The UK has been reminded that its high level of household debt, current account deficits, and fiscal deficit – of approximately five per cent of gross domestic product (GDP) – must be rectified to reduce the economic risks.
If the country keeps on track, the IMF added that “steady growth looks likely to continue over the next few years, and inflation (at -0.1 per cent in October from a year ago although core inflation, which strips out volatile fuel and food prices, rose to 1.1 per cent) should gradually return to target.”