Describing the UK economy as "on the mend", the IMF's annual report noted that the health of the financial sector has improved while unemployment levels have stabilised.
It added that the deficit reduction plan is "essential" to the UK's future, helping to secure the sustainability of its debts and support a balanced recovery.
"Fiscal tightening will dampen short-term growth but not stop it as other sectors of the economy emerge as drivers of recovery, supported by continued monetary stimulus," the analysis went on to state.
Earlier this month, an IMF report also praised the austerity measures that have been carried out in Greece.
But it warned that the Greek government needs to crack down on tax evasion and improve spending controls if it wants to continue its good work, reported Reuters.
By Tony Aynsley