Abstract
This 2012 Article IV Consultation reports that the United Kingdom's economic recovery has been sluggish, as the needed hand-off from public to private demand-led growth has not fully materialized. Economic activity is projected to gain modest momentum in future, but the pace of expansion is expected to be weak relative to the scale of underutilized resources. Executive Directors have welcomed the authorities’ efforts aimed at economic rebalancing. However, they have cautioned that a stalling recovery, high unemployment, and uncertain external conditions continue to present significant challenges.
Fund Relations
(Data as of May 31, 2012)
I. Membership Status: Joined December 27, 1945; accepted Article VIII.
II. General Resources Account:
| SDR Million | Percent Quota | |||
|---|---|---|---|---|
| Quota | 10,738.50 | 100.00 | ||
| Fund holdings of currency | 6,955.84 | 64.77 | ||
| Reserve Tranche Position | 3,782.86 | 35.23 | ||
| Lending to the Fund | ||||
| New Arrangement to Borrow | 2,098.44 | |||
| SDR Million | Percent Quota | |||
|---|---|---|---|---|
| Quota | 10,738.50 | 100.00 | ||
| Fund holdings of currency | 6,955.84 | 64.77 | ||
| Reserve Tranche Position | 3,782.86 | 35.23 | ||
| Lending to the Fund | ||||
| New Arrangement to Borrow | 2,098.44 | |||
III. SDR Department:
| SDR Million | Percent Allocation | ||
|---|---|---|---|
| Net cumulative allocation | 10,134.20 | 100.00 | |
| Holdings | 9,561.66 | 94.35 | |
| Designation Plan | 0.00 |
| SDR Million | Percent Allocation | ||
|---|---|---|---|
| Net cumulative allocation | 10,134.20 | 100.00 | |
| Holdings | 9,561.66 | 94.35 | |
| Designation Plan | 0.00 |
IV. Outstanding Purchases and Loans: None
V. Financial Arrangements: None
VI. Projected Payments to Fund:1/ (SDR million; based on present holdings of SDRs):
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2012 | 2013 | 2014 | 2015 | 2016 | |
| Principal | |||||
| Charges/Interest | 0.38 | 0.86 | 0.86 | 0.86 | 0.86 |
| Total | 0.38 | 0.86 | 0.86 | 0.86 | 0.86 |
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
| Forthcoming | |||||
|---|---|---|---|---|---|
| 2012 | 2013 | 2014 | 2015 | 2016 | |
| Principal | |||||
| Charges/Interest | 0.38 | 0.86 | 0.86 | 0.86 | 0.86 |
| Total | 0.38 | 0.86 | 0.86 | 0.86 | 0.86 |
When a member has overdue financial obligations outstanding for more than three months, the amount of such arrears will be shown in this section.
VII. Exchange Rate Arrangement:
The UK authorities maintain a free floating regime. As of June 8, 2012 the exchange rate for sterling was $1.56. In accordance with UN resolutions and EU restrictive measures, the United Kingdom applies targeted financial sanctions under legislation relating to Al-Qaeda and Taliban, and individuals, groups, and organizations associated with terrorism; and certain persons associated with: the former Government of Iraq, the former Government of Liberia, the current Government of Burma (aka Myanmar), the former Government of the Republic of Yugoslavia and International Criminal Tribunal Indictees, the current Government of Zimbabwe, the current government of Belarus, the current government of North Korea; the current government of Iran and persons considered to be a threat to peace and reconciliation in Sudan, Cote d'Ivoire, and Democratic Republic of Congo; and persons considered by the UN to have been involved in the assassination of former Lebanese Prime Minister Rafik Hariri. These restrictions have been notified to the Fund under Decision 144–(52/51).
VIII. Article IV Consultation:
Discussions for the 2012 Article IV consultation were conducted in London during May 9–22, 2012. The Staff Report (IMF Country Report) was considered by the Executive Board on [July 16, 2012].
IX. FSAP
The FSAP update was completed at the time of the 2011 Article IV Consultation.
X. Technical Assistance: None
XI. Resident Representative: None
Statistical Issues
Economic and financial data provided to the Fund are considered adequate for surveillance purposes. The United Kingdom subscribes to the Special Data Dissemination Standard (SDDS) and meets the SDDS specifications for the coverage, periodicity, and timeliness of data. SDDS metadata are posted on the Dissemination Standard Bulletin Board (DSBB).
Table of Common Indicators Required for Surveillance
(As of June 6, 2012)
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Table of Common Indicators Required for Surveillance
(As of June 6, 2012)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication 7 | |
|---|---|---|---|---|---|
| Exchange Rates | 05/06/2012 | 06/06/2011 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | May 2012 | 06/06/2011 | M | M | M |
| Reserve/Base Money | 30/05/2012 | 06/06/2012 | W | M | M |
| Broad Money | April 2012 | 30/05/2012 | M | M | M |
| Central Bank Balance Sheet | 30/05/2012 | 06/06/2012 | W | W | W |
| Consolidated Balance Sheet of the Banking System | April 2012 | 30/05/2012 | M | M | M |
| Interest Rates2 | 05/06/2011 | 06/06/2012 | D | D | D |
| Consumer Price Index | April 2012 | 22/05/2012 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | Q4 2011 | 23/05/2012 | Q | Q | Q |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | April 2012 | 22/05/2012 | M | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | April 2012 | 23/05/2012 | M | M | M |
| External Current Account Balance | Q4 2011 | 28/03/2012 | Q | Q | Q |
| Exports and Imports of Goods and Services | March 2012 | 15/05/2012 | M | M | M |
| GDP/GNP | Q1 2012 | 24/05/2012 | Q | Q | Q |
| Gross External Debt | Q4 2011 | 28/03/2012 | Q | Q | Q |
| International Investment Position6 | Q4 2011 | 28/03/2012 | Q | Q | Q |
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).
Table of Common Indicators Required for Surveillance
(As of June 6, 2012)
| Date of latest observation | Date received | Frequency of Data7 | Frequency of Reporting7 | Frequency of Publication 7 | |
|---|---|---|---|---|---|
| Exchange Rates | 05/06/2012 | 06/06/2011 | D | D | D |
| International Reserve Assets and Reserve Liabilities of the Monetary Authorities1 | May 2012 | 06/06/2011 | M | M | M |
| Reserve/Base Money | 30/05/2012 | 06/06/2012 | W | M | M |
| Broad Money | April 2012 | 30/05/2012 | M | M | M |
| Central Bank Balance Sheet | 30/05/2012 | 06/06/2012 | W | W | W |
| Consolidated Balance Sheet of the Banking System | April 2012 | 30/05/2012 | M | M | M |
| Interest Rates2 | 05/06/2011 | 06/06/2012 | D | D | D |
| Consumer Price Index | April 2012 | 22/05/2012 | M | M | M |
| Revenue, Expenditure, Balance and Composition of Financing3 – General Government4 | Q4 2011 | 23/05/2012 | Q | Q | Q |
| Revenue, Expenditure, Balance and Composition of Financing3– Central Government | April 2012 | 22/05/2012 | M | M | M |
| Stocks of Central Government and Central Government-Guaranteed Debt5 | April 2012 | 23/05/2012 | M | M | M |
| External Current Account Balance | Q4 2011 | 28/03/2012 | Q | Q | Q |
| Exports and Imports of Goods and Services | March 2012 | 15/05/2012 | M | M | M |
| GDP/GNP | Q1 2012 | 24/05/2012 | Q | Q | Q |
| Gross External Debt | Q4 2011 | 28/03/2012 | Q | Q | Q |
| International Investment Position6 | Q4 2011 | 28/03/2012 | Q | Q | Q |
Includes reserve assets pledged or otherwise encumbered as well as net derivative positions.
Both market-based and officially-determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.
Foreign, domestic bank, and domestic nonbank financing.
The general government consists of the central government (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.
Including currency and maturity composition.
Includes external gross financial asset and liability positions vis-à-vis nonresidents.
Daily (D); weekly (W); monthly (M); quarterly (Q); annually (A); irregular (I); and not available (NA).