IMF urges G20 to take 'bold action' on global economy

Fund's report says risks of more severe downturn are mounting as UK government battles sluggish productivity growth

The International Monetary Fund has urged the UK to ease back on austerity should the economy slow further, as it warned finance ministers at the G20 summit in Shanghai to boost public spending on infrastructure to fuel global growth.

In a report on the UK's economic outlook, the IMF said the risks of a more severe downturn were mounting as David Cameron's government battled sluggish productivity growth, a balance of payments deficit, high levels of household debt, and the forthcoming referendum on EU membership.

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