United Kingdom: 2000 Article IV Consultation—Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Authorities of the United Kingdom

IMF Staff Country Reports, February 28, 2001

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Canonical URL: United Kingdom: 2000 Article IV Consultation—Staff Report; Staff Statement; Public Information Notice on the Executive Board Discussion; and Statement by the Authorities of the United Kingdom

Strengthened macroeconomic and structural policies, underpinned by improved monetary and fiscal policy frameworks, have contributed to the United Kingdom's achievements.
Executive Directors commended these developments.
Directors supported policies to encourage innovation and entrepreneurship, promote research and development, and strengthen competition to foster the New Economy and boost productivity growth in the rest of the economy.
Directors agreed that the banking system is profitable and well capitalized, but stressed the need to be more vigilant.

Macroeconomic and structural policy strengthening is credited with recent achievements.
Policy focus recommended on:
- Encouraging innovation and entrepreneurship.
- Promoting research and development.
- Strengthening competition to foster the New Economy and raise productivity outside the New Economy.
Financial sector assessment:
- The banking system is described as profitable and well capitalized.
- Continued vigilance is recommended.

Subject: Expenditure; Fiscal policy; Labor productivity; Production; Productivity; Total factor productivity
Keywords: average earnings growth; CR; further rate cut; Global; harmonized index; ISCR; Labor productivity; monetary policy; Monetary policy Committee; money market interest rates; Productivity; rate; surplus; Total factor productivity; UK financial system