136/03
18 December 2003
IMF REPORT ON UK ECONOMIC PERFORMANCE
“In the face of sizable global shocks over the last few years, the economic performance of the UK has been enviable” the International Monetary Fund said today.
In the concluding statement to its Article IV examination of the UK economy, the IMF notes that “growth has been resilient”, “unemployment has been stable and at a low level” and “inflation has remained close to target”. It praises the monetary policy framework, which it says has “achieved a high degree of credibility”, and comments that the increase in government borrowing “does not raise sustainability problems” and has “played a useful countercyclical role”.
The IMF also welcomes recent reforms and initiatives aimed at improving productivity and says that it is “encouraged by the success” of the New Deal.
Notes to Editors
1. IMF surveillance of every major country, called an Article IV consultation, is carried out through annual discussions between Fund staff and member governments and central banks. The resulting reports are discussed at the IMF’s Executive Board within 3 months of the consultations. As part of the Government’s drive to increase transparency, domestically and internationally, we publish the Concluding Statement of the IMF Mission just after the team completes its work. The statement is attached.
2. Enquiries on the IMF report should be addressed to the Treasury press office (020 7270 5238).