The OECD group of leading economies on Tuesday approved Britain`s running of the economy but warned about growing inequality, in a boost for Prime Minister David Cameron as elections loom.
Angel Gurria, head of the Organisation for Economic Cooperation and Development (OECD), said the British economy expanded by 2.6 percent in 2014 and "the building blocks have been placed to have a long-term growth".
He also praised the development of the labour market, where the unemployment rate has fallen to 5.7 percent.
Speaking at a press conference with British finance minister George Osborne, Gurria congratulated him on halving Britain`s budget deficit but warned it was "still high in comparison to other OECD countries".
He also pointed to growing inequality, saying that "any further effort in fiscal consolidation has to be made in regard of revenue distribution".
Gurria said that another economic challenge for Britain was increasing productivity, pointing out that it had been "weak" compared to other countries.
The OECD brings together 34 top world economies.
The economy is at the centre of Britain`s election campaign, which is a close run between the ruling Conservative Party and the opposition Labour, ahead of the vote on May 7.
Cameron`s Conservatives are campaigning on economic achievements, while Labour argues that growth has failed to improve living standards and says that the government has caused a "cost of living crisis".
