Lagarde is smiling now but risks she sees for UK aren't easily fixed

Economy's longstanding problems, notably productivity and housing supply, mean IMF cheerleading could soon fizzle out

You could forgive George Osborne for dreading this latest visit to the UK by Christine Lagarde. Less than three years ago the International Monetary Fund chief dealt what appeared to be a killer blow to the chancellor's credibility when she told him to rethink his austerity drive. Her chief economist, Olivier Blanchard, went even further and warned Osborne he would be "playing with fire" if he didn't let up on cuts.

Fast forward to now and, as Osborne said himself, Friday's assessment from the IMF's experts "could hardly be more positive". The Fund flagged record high employment, a more resilient banking sector and a pace of economic growth that puts many of the UK's peers in the shade.

Related: IMF boss Lagarde says she wants Britain to stay in EU