The UK needs to invest and reverse its declining exports if its recovery is to be more sustainable, the country's Treasury chief, George Osborne, told CNBC.
Speaking at the International Monetary Fund's spring meeting in Washington, Osborne admitted that the while the U.K.'s economy was showing signs of growth, it needed to go beyond a consumer credit-led recovery.
"We need more investment. We certainly need more exports," he said. "I think this whole Western model which is 'let's borrow money from the Chinese to buy the things they make for us', is not sustainable."
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Last week the IMF increased its forecast for the U.K.'s annual gross domestic product (GDP) growth rate to 2.9 percent this year—the second upward revision this year. It came just weeks after Osborne upgraded his own outlook. He forecast GDP would accelerate by 2.7 percent this year, after growth of 1.7 percent in 2013.
At a news conference last week IMF Chief Economist Olivier Blanchard said the organization had "clearly under-forecast"U.K. growth previously.
However there are concerns about the nature of the recovery and that the U.K.'s comeback isn't built on a firm foundation.The U.K.'s fiscal watchdog, the Office for Budget Responsibility, has raised concerns about the country's balance of trade.