International Monetary Fund chief Christine Lagarde praised the coalition's management of the British economy, saying it provides the right balance of spending cuts and taxes to deliver growth.
Lagarde said the Conservatives and Lib Dem strategy is "clearly delivering results" when compared with other European economies.
The UK government demonstrated it was capable of adjusting to the economic reality by delivering spending cuts and revenue raising at a pace that is right for the British economy, she added.
Lagarde's comments come at a crucial point in the General Election campaign, with just 20 days to go.
Greece's finance minister Yanis Varoufakis is due to meet with the International Monetary Fund's Christine Lagarde on Sunday to continue discussions of the planned reforms that Athens hopes will unlock the bailout funds Greece needs.
The finance ministry and the IMF confirmed Varoufakis and Lagarde would be meeting in Washington for "an informal discussion".
The International Monetary Fund (IMF) is ready to continue supporting Greece and looks forward to talks with the country's new government, IMF chief Christine Lagarde said.
"We stand ready to continue supporting Greece, and look forward to discussions with the new government," Lagarde said in a statement.
The International Monetary Fund has predicted that the UK economy will grow by 2.7% this year, but lowered its forecast for global growth.Read the full story ›
The International Monetary Fund has cut its forecast for global growth in 2015 to 3.5%, down from the 3.8% it forecast in October last year.
It also slashed its forecast for 2016 from 4% to 3.7%.
The US was the only major economy to see an upward revision from 3.1% in October to 3.6% today.
Britain and the US are leading global recovery, the head of the IMF has said.
In a major boost for David Cameron, Christine Lagarde praised the UK's "eloquent and convincing" lead in the European Union's battle for prosperity.
At the start of roundtable discussion in Washington, which she co-hosted with the Prime Minister, Lagarde said growth in the UK "is improving, the deficit has been reduced, and where the unemployment is going down."
"Certainly from a global perspective this is exactly the sort of result that we would like to see," she added.
The Ebola outbreak is likely to lead to "sharply" lower growth in Guinea, Liberia and Sierra Leone and all three of the poor West African countries may need support in future, a spokesman for the International Monetary Fund (IMF) said today.
The Ebola outbreak is having an acute macroeconomic and social impact on three already fragile countries in West Africa. We are actively working with all three countries to prepare a preliminary economic assessment of the impact of the Ebola crisis, and additional financing support that may be required.
The boss of the International Monetary Fund has issued a new warning about the dangers of rising houses prices in Britain.
Christine Lagarde said the Bank of England should rein in risky mortgages.
ITV News Economics Editor Richard Edgar reports.
The Chief Secretary to the Treasury says today's IMF report on the British economy is "extremely good news" and a "strong endorsement" of the Government's strategy.
However, Danny Alexander acknowledged that ministers have to "keep a close eye" on the housing market to defuse any risks.
The head of the IMF has given a ringing endorsement of the UK's recent economic progress, saying the news has been "pretty much all good".
At the same time, Christine Lagarde warned of "risks looming on the horizon" from weak productivity and an overheating housing market.