The fund conceded demand in the UK held up "better than expected" after the Brexit vote, putting year on year growth at two per cent in 2016 - the highest in the G7, coming in above the United States' 1.6 per cent.
Economic expansion has also been reforecast UP for 2017 in the Washington-based fund's latest World Economic Outlook (WEO) report.
The UK economy is set to grow by 1.5 per cent this year, according to the fund.
In October the IMF predicted growth of 1.1 per cent.
Following in the footsteps of Bank of England governor Mark Carney, the IMF warned Brexit is a major risk for Europe.
Maurice Obstfeld, IMF research department director, said: "Britain’s terms of exit from the European Union remain unsettled and the upcoming national electoral calendar is crowded, with possibilities of adverse economic repercussions, in the short and longer terms."
The fund has predicted France will grow by just 1.3 per cent this year and Italy by only 0.7 per cent.
Germany is predicted to grow by 1.5 per cent - the same rate at Britain.
A Treasury spokesperson said: “The fundamentals of the UK economy are strong, and today’s IMF forecasts confirm their view that the UK was the fastest-growing major advanced economy last year.
"We have reduced the deficit by almost two thirds, cut taxes for millions of working people, and employment is at a near-record high.
"The Autumn Statement reaffirmed the government’s commitment to return the public finances to balance as soon as practicable, while providing flexibility to support the economy as we exit the EU.”
Overall, the fund has predicted that global growth will pick-up this year and next year, with the US set to benefit from greater government spending under Donald Trump's administration.
The IMF also urged countries to focus on structural reforms to help boost economic growth.
But also warned that globalisation was creating wider inequality and wage stagnation in many countries.
Mr Obstfeld added: "We do well to acknowledge a key takeaway from 2016: sustainable growth must also be inclusive growth."