The head of the International Monetary Fund said the organization underestimated the strength of the British economy when warning last year the country risked playing with fire by making budget cuts, Bloomberg reported Monday.
IMF managing director Christine Lagarde told BBC Television Sunday that the IMF was wrong about government austerity policies.
“Clearly the confidence building that has resulted from the economic policies adopted by the government has surprised many of us,” Bloomberg quoted Lagarde as saying.
The IMF said in April the British economy will outpace the other G7 nations to grow 2.9 percent this year, according to the report.
Lagarde said the British economic outlook is now “more sustainable” as investment joins consumption as an engine. But the housing market is still a threat.
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