HISTORIC PRESS RELEASE : IMF report on UK Economic Performance [December 2002]
The press release issued by HM Treasury on 9 December 2002.
“The UK economy is performing well” and “the UK public finances appear in a better position than those of many other advanced economies” report the International Monetary Fund today in the concluding statement of their recent examination of the UK economy.
The report praises the “impressive results” of the UK’s monetary policy framework. In relation to fiscal policy, the IMF conclude that “the short-term widening of the overall deficit is not a source of concern” and the underlying fiscal position remains “sound”. But they warn of the “risk” to the economy of intensifying public sector wage demands.
The IMF also endorse many of the structural reforms to boost growth the Government has introduced, while acknowledging “the key challenge is to raise total factor productivity”.
Commenting on today’s report the Chancellor Gordon Brown said:
“I welcome this acknowledgement from the IMF that, because of the tough decisions we have taken in the past, the UK remains better placed than others to withstand the impact of increased global economic uncertainty. And it is because we are determined to continue to deliver economic stability and value for money in public services, that we should not put our hard won stability at risk by yielding to inflationary and unaffordable pay settlements that would put low inflation and low interest rates in jeopardy and damage the wider economy.”
