HISTORIC PRESS RELEASE : The UK Economy “A Remarkable Performance” says IMF [November 1999]

The press release issued by HM Treasury on 24 November 1999.

“The performance of the UK economy in recent years has been remarkable” according to the latest assessment by experts from the International Monetary Fund.

On the Government’s progress to delivering its central economic objective of high and stable levels of growth and employment, the IMF report that “growth has been high, unemployment has declined steadily to very low levels, and inflation has remained subdued”.

The Fund conclude that “this strong performance is in good part owing to the improved policy framework which has fostered sound monetary and fiscal policies and significant structural reforms.”

Commenting on the IMF’s statement, the Chancellor, Gordon Brown, said:

“I welcome today’s assessment of the UK economy by the IMF. It clearly supports the Government’s new framework for economic policy, and our continued prudent and cautious approach to managing the public finances.”

Other major points in the IMF’s report include:

• “the new monetary policy framework is working well”;
• the continued need for “a cautious approach” in managing the public finances, and the importance of avoiding the mistakes of the past, which led to gains being frittered away. They say “there is no case for relaxing fiscal policy”. In particular they “welcome the prudent approach espoused in the PBR”;
• plaudits for the UK’s “enviable” record on transparency in policy-making;
• praise for the Government’s policies to move people off welfare and into work, and to make work pay. They note “the Government’s welfare reforms, including the New Deals and the WFTC…hold great promise for combatting poverty and reducing the number of jobless households”;
• commendation of the Government’s efforts to put the issue of debt relief for the poorest countries at the top of the international agenda, and for “their commitment to increasing UK overseas aid spending”.

The IMF’s report comes shortly after the OECD, another major international organisation, also praised the Government’s management of the UK economy. In it’s Economic Outlook, published last week, the OECD issued projections for the UK economy which are closely similar to the Government’s PBR forecasts, and singled out for special mention the UK’s “markedly improved labour market performance as well as skilful management of monetary policy”