The International Monetary Fund (IMF) has predicted that the UK's economy will be the fastest growing of all the G7 nations for the full year 2014.
In new predictions for economic growth in the near future, the IMF stated that the UK economy will expand by 2.9 per cent in 2014, followed by 2.5 per cent in 2015. In its previous estimate, the IMF suggested the UK economy would expand by 2.4 per cent this year.
The IMF has also revised its predictions for the global economy, with the body claiming this is likely to grow by 3.6 per cent this year and 3.9 per per cent in 2015.
India, South Korea and Indonesia were among the countries the IMF said will benefit from improvements in the export environment in the coming months and years.
The IMF report is in sharp contrast to comments made earlier in the week by chief economist at the British Chambers of Commerce David Kern, who stated that the UK's economic recovery is "not secure", as it has been built on consumer spending and personal debt levels are still high.
He said: "Investment and exports must play a larger contribution to our economic future, or else there is a risk that our recovery could stall."
But the IMF said monetary policy should stay accommodative in the UK, with recent modifications by the Bank of England to the forward-guidance framework welcomed by the body.
It said: "Similarly, the government's efforts to raise capital spending while staying within the medium-term fiscal envelope should help bolster recovery and long-term growth."
The UK's recovery from the recession – caused by the global financial crash – has been slow and struggled to get out of first gear in recent years. However, if the IMF report turns out to be accurate, this would suggest growth will enjoy a spurt in the coming months.
Just a couple of months ago, the IMF upwardly revised its predictions for the UK economy.
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