In a major boost to the government's efforts to improve growth in the UK, the International Monetary Fund has said that it expects the British economy to grow at a faster rate than expected.

The positive outlook for the UK economy came as the global body downgraded forecasts for the rest of the developed economies. The IMF now expects the economy to grow at 0.9 per cent this year compared with the 0.6 per cent forecast made in April. The agency has kept its forecast for growth of 1.5 per cent in 2014 unchanged for the country.

The decision by the IMF to increase the forecast for this year and keep the forecast for the next year unchanged has made UK the only major economy not facing a downgrade in the next two years. The IMF had earlier downgraded the UK growth forecast warning that the Chancellor Osborne is taking huge risks with his austerity plan.

The industry members have welcomed the upgrade for the country and indicate that the government's plans to boost growth are working. However, the business leaders have said that the government is required to do more to boost growth in the country.