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IMF upgrades UK growth forecast for 2026 despite persistent risks
The IMF projects UK growth of 1.3% in 2026, up from its 1.0% July forecast, before slowing in 2027.
The International Monetary Fund has upgraded its outlook for the UK economy, with the IMF forecasting 1.3% growth in 2026, higher than the 1.0% it projected in July, before growth slows in 2027, according to BBC Business.
The IMF acknowledged risks to the outlook, including severe disruptions to the transportation and production of energy in the Middle East that have pushed oil prices higher and contributed to rising inflation.
To help contain inflation, central banks including the Bank of England are expected to hike interest rates in the coming months, the outlet reported.
BBC Business also said the IMF credited the global economy performing better than expected, in part due to a surge of investment into artificial intelligence, with implications for the UK.