The International Monetary Fund has offered its backing to the deficit-reducing economic plan being implemented by the U.K. government despite signs that the country’s recovery is slowing, according to The Daily Telegraph. On Monday, the global fund published its annual report on the U.K. economy, which warned that despite significant risks to the strength of the economic recovery, the government should maintain its current course. The IMF estimates that growth of U.K. gross domestic product will be 1.5% during 2011 before rising to 2.5% annually in the medium term.

The report express concern over recent data, “The weakness in economic growth and rise in inflation over the last several months was unexpected,” but said because “the deviations are largely temporary,” economic policies should not be changed. However, given the risks seen by the group in the U.K. economic outlook, the IMF said that further signs of slow growth or increasing inflation should be met with additional quantitative easing by the Bank of England in addition to government tax cuts for the poor.

Click here to read the story from The Daily Telegraph.

Click here for the full text of the IMF report, from The Daily Telegraph.