Recovery delayed by high household debt

Britain`s economic recovery is being held back by high levels of household debt, according to the International Monetary Fund (IMF).

The IMF, according to The Times, has stated that the pace of economic decline appears to be slowing down, but that the speed at which the economy can recover is being hampered by the high levels of household debt.

"The recovery is expected to be subdued and gradual as banks and households go through a difficult balance sheet restructuring process," the IMF said.

While praising the Government`s `aggressive` action to contain the crisis, the IMF also urged that Government debt should be cut more rapidly.

A spokesperson for Gregory Pennington said, "The economy`s recovery may speed up when more people can afford to go out and spend more of their money. At the moment, many people are having to use a lot of their money to stay on top of their debt."

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