Publication - December 18 - 2020IMF Executive Board Concludes 2020 Article IV Consultation with United Kingdom
Washington, DC: The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation [1] with United Kingdom.
The UK economy entered 2020 with some challenges but also with some strengths. Key challenges included agreeing to a post-Brexit trade deal with the EU, weak productivity growth, large regional disparities in income, population aging (and its impact on pension spending), and the need to strengthen climate policies. At the same time, the economy was operating at full employment, inflation was close to target, household and corporate debt burdens had fallen substantially since 2009, the banking system was well-capitalized and liquid, and fiscal adjustment had set debt on a declining trajectory, with fiscal space available.