International financial leaders have praised the resilience of the UK economy.

The International Monetary Fund described the stability of the UK economy as “remarkable”, despite the housing market slowdown and rising fuel prices.

It has also forecast that economic growth would pick up in 2006 and 2007, to 2.25 per cent and 2.75 per cent respectively.

"Macroeconomic stability in the UK remains remarkable," its report said.

But, it did warn the Chancellor needs to rein in spending to stop budget deficits widening further, according to the BBC.

Topics