The UK will be the fastest-growing Western economy in 2014, according to the International Monetary Fund. In its World Economic Outlook, the IMF says that the UK’s GDP growth will be 2.9% this year, before returning to its “long-term trend of 2.5%” in 2015. In January, the IMF forecast growth of 2.4%. The strongest economy is predicted to be China, with 7.5% growth — dropping to 7.3% next year.

Oliver Blanchard, the chief economist at the Washington-based organisation, also apologised to the Chancellor of the Exchequer for being “overly pessimistic” at the start of 2013, when he warned the Government that it must abandon its ‘austerity’ measures or risk jeopardising future growth. However, the IMF maintains that the UK’s economy is too reliant on ‘easy credit’, and that business investment and exports remain weak.

A Treasury spokesman said: “The IMF forecast is further evidence that the Government’s long-term economic plan is working, providing economic security for hard-working people. The biggest risk now to the recovery would be abandoning the plan that is delivering a brighter economic future.”

Mr Blanchard added that the world economy could still be “blown off course” by the crisis in Ukraine, volatile stock markets and the possibility of interest rate rises — especially in the USA. He said: “Acute risks have decreased, but risks have not disappeared. Financial reform in the south of Europe is incomplete, and the financial system remains at risk.”