IMF raises UK outlook but warns political turmoil could hurt growth
The IMF said the UK remained resilient and projected 1% growth in 2026, but warned higher energy prices could lift inflation temporarily.
- The International Monetary Fund raised Britain's 2026 growth forecast to 1% today, up from 0.8%, citing "more momentum than expected" but warning that the Iran war and "domestic uncertainty" could dampen prospects.
- Figures released last week showed the economy grew by 0.6% in the first quarter of 2026, with rebounds in retailing and construction providing the pre-war momentum driving the Fund's improved outlook.
- The IMF reported that holding rates for the remainder of the year should be sufficient to bring inflation back to the 2% target by 2027, even as energy prices rise "temporarily."
- On Monday, British Chancellor Rachel Reeves called the upgrade "proof" of the government's "right economic plan," warning that "putting our stability at risk" by challenging Prime Minister Sir Keir Starmer would harm families and businesses.
- The Fund reinforced the need to stick to deficit reduction plans targeting a balanced budget by 2029/30, while warning of "difficult choices" regarding rising spending pressures on ageing, defence, and the climate transition.
17 Articles
17 Articles
IMF raises UK outlook but warns political turmoil could hurt growth
The International Monetary Fund raised its growth forecast for Britain's economy this year on Monday but warned that further "domestic uncertainty", at a time when political instability is engulfing the government, could hit spending and investment.
perspectivemedia.com
Iran war hit to UK growth less than feared but inflation still to rise – IMF
The International Monetary Fund (IMF) updated its growth projections a month after warning of a sharp slowdown caused by the global energy shock. Growth in the UK economy will be stronger this year than previously thought but the Iran war continues to dampen the outlook, with the cost of living set to rise and borrowing costs kept on hold, according to new forecasts. The International Monetary Fund (IMF) updated its growth projections a month af…
Coverage Details
Bias Distribution
- 40% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
