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According to the body, a possible shortage in bank credit and high levels of personal debt mean that any improvement in the economy is likely to be gradual.
Many households and financial institutions will have to undergo a "difficult balance sheet restructuring process", the IMF stated, adding that consumers will "retrench spending" until they are able to reduce their debts.
Despite this, the organisation said that the government's actions to stimulate the economy, such as cutting interest rates and introducing quantitative easing, may be starting to have a positive effect.
Earlier this week, the Office for National Statistics revealed the consumer prices index fell 0.6 per cent in April.
This latest decrease has put the figure at 2.3 per cent, meaning it is now closer to the two per cent target set by the government.
