The International Monetary Fund has raised its growth forecast for the UK in 2026, now projecting an expansion of 1.3%, though it cautions that momentum may slow in the following year. The IMF’s top economist has urged the UK government to maintain its fiscal repair efforts ahead of the upcoming budget, praising its deficit-reduction strategy as a standout approach among major advanced economies. Meanwhile, the fund warns that the global economy may soon face strains on its resilience, adding pressure on policymakers to balance growth with financial stability. The assessment comes as Britain prepares for its first major economic review under the current government.
Fund upgrades UK’s GDP growth forecast for 2026 to 1.3%, but says it is likely to ‘edge down’ next year IMF warns global economy ‘could soon test the limits of resilience’John Healey should “stay the course” and continue repairing the UK’s public finances, the International Monetary Fund’s top economist has said, after the fund lifted its growth forecast for Britain.Little more than a fortnight before Healey’s first budget, Silvana Tenreyro, the IMF’s economic counsellor, said the UK “stands out” among G7 countries in having a plan to narrow its deficit. Continue reading...
