Three things we've learnt about the UK economy from the IMF
Key Takeaways
- The IMF upgraded the UK's 2026 growth forecast to 1.3%.
- The UK compares favorably to G7 peers regarding national borrowing and deficit management.
- Global energy disruptions from the Middle East continue to pose structural risks.
- Growth is projected to slow down heading into 2027.
The IMF has upgraded its UK growth forecast for 2026 to 1.3%, driven by resilience against global energy shocks and AI investments. Additionally, the UK is managing its national borrowing better than most major G7 economies, aided by a stable majority government. Despite these positive indicators, growth is expected to slow next year as energy prices and international risks continue to weigh on the outlook.
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