BBC has reported that the UK economy is growing faster than initially anticipated. The International Monetary Fund (IMF) has revised its growth forecast for the UK economy upwards by 0.4% to 2.9% for 2014, making it the fastest growing economy amongst the G7 nations. The IMF also raised its global growth forecast by 0.1% to 3.6% for 2014, and by 0.1% to 3.9% for 2015.

Despite this, the IMF has warned that recovery from the financial crisis is still incomplete and fragile. The organisation has highlighted that the eurozone and Japan are still battling deflation, while emerging economies are experiencing slower growth. The IMF also pointed out that geopolitical tensions in Ukraine and Russia could affect global economic stability.

On a positive note, the IMF has praised the UK for its economic recovery, attributing it to increased consumer spending and a revival in the housing market. The organisation also noted that the UK’s unemployment rate has fallen faster than expected, which is a positive sign for the economy.

The UK Chancellor, George Osborne, has welcomed the revised growth forecast, stating that it is a sign that the government’s economic plan is working. However, he also cautioned that the job is not yet done and that the government will continue to work hard to secure a sustainable recovery.

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