136/97
6 November 1997
GOVERNMENT DELIVERS ON KEY ECONOMIC COMMITMENTS
The IMF Executive Board today endorsed the Government's economic policies in a discussion on the UK's Article IV.
Chancellor, Gordon Brown, said:
"I am delighted with the Executive Board's endorsement of our policies. They confirm that we are now on course to get the UK economy back on track and to achieve our objective of high and stable levels of growth and employment."
The Board discussion focussed on the IMF's Staff and Selected Issues Papers which commend the governments actions:
"The new government has set itself a high standard, aiming to consolidate stability and foster long-term growth, while seeking fairness and developing human potential. It has made a bold start toward achieving this standard, winning credibility by delivering on key commitments and setting vigorously to work on an ambitious agenda".
"The new government has stressed its commitment to macroeconomic stability, sound public finances, and flexible markets, while emphasizing the need to raise the quality of public services (particularly in health and education), promote fairness, and foster long-run economic growth through investment in physical and human capital".
Notes for Editors
1. As part of its normal surveillance work, the IMF carries out an annual appraisal of its members economies. This appraisal is known as an Article IV consultation. Following this year's Article IV, in July, the UK released the IMF Delegation's Concluding Statement. The Delegation then prepare a report which forms the basis of a discussion by the Executive Board.
2. On 27 October, the IMF Executive Board discussed the Staff Report on the UK's 1997 Article IV Consultation. The IMF have now issued a Press Information Notice which includes the main points made at the Board discussion and the Chairman's summing up of the Board discussion.
3. Supplementary to the Staff Report is the Fund's Selected Issues Paper which contains a detailed analysis of the economy and the Government's policies. The Paper concentrates on the following areas:
National Accounts Revisions and the Economic Cycle Fiscal Policy: Developments and Prospects Inflation Targeting in the UK: Experience and Prospects Labour Market Performance and Policies in International Perspective The Level of the Minimum Wage.