United Kingdom: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for United Kingdom

February 24, 2016

Preview Citation

Format: Chicago

United Kingdom: 2015 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for United Kingdom, (USA: International Monetary Fund, 2016) accessed December 24, 2024

Summary

Considerable progress has been achieved in the post-crisis repair of the UK economy. Private-sector indebtedness has been reduced, the financial sector regulatory framework has been overhauled, the fiscal deficit has been cut in half, and the employment rate has reached a record high. With the output gap now nearly closed, growth is expected to average near its potential rate of around 2¼ percent over the medium term, with inflation rising slowly from its current low levels to the 2 percent target by end-2017. However, this benign baseline is subject to risks, including those related to potential shocks to global growth and asset prices, still-high levels of household debt, the elevated current account deficit, and the degree to which productivity growth will recover. Uncertainty associated with the outcome of the forthcoming referendum on EU membership could also weigh on the outlook. Continued efforts are needed to complete the post-crisis repair, promote growth, and further bolster resilience.

Subject: Banking, Economic sectors, Financial sector, Housing prices, Income, Inflation, National accounts, Prices, Production, Productivity

Keywords: Core inflation, CR, Financial sector, Global, Government, Holding, Housing prices, IMF staff estimate, Income, Inflation, Information Notic system, Infrastructure priority, ISCR, Money market rate, Productivity, SDR, UK bank

Publication Details

Pages:

65
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2016/057
Stock No:

1GBREA2016001
ISBN:

9781498367042
ISSN:

1934-7685

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