28 Sep 2010

UK economy 'will continue to recover'

1:54 pm on 28 September 2010

The International Monetary Fund says Britain's economy is on the mend, and has backed the coalition government's plans to cut spending.

The IMF describes the deficit reduction plan as essential in supporting the UK's debt position, saying it supported a balanced recovery, the BBC reports.

The organisation also said that the UK economy would continue to recover at a moderate pace while the cuts were implemented.

The IMF predicted growth of 2% in 2011, rising to 2.5% in the medium term.

That marks a small revision downwards from an earlier forecast of 2.1% growth in 2011.

Britain's finance minister, George Osborne, welcomed the body's verdict, saying it vindicated his economic strategy.