IMF Upgrades UK Growth Forecast for 2026 Ahead of Autumn Budget
· Business · BBC News, Hindustan Times
The International Monetary Fund has upgraded its UK economic growth forecast for this year to 1.3% from the 1% predicted in July. Economies globally have shown resilience to energy price shocks driven by the US-Iran war, though the IMF warns the fallout remains highly uncertain. Chancellor John Healey is finalising tax and spending plans for the upcoming October Budget while facing pressure from surging government borrowing costs. The IMF projects the UK will record a sharp fall in borrowing and the lowest annual deficit of all G7 countries over the next five years. However, growth is expected to slow to 1.2% in 2027 as higher energy prices and interest rates weigh on household spending and business investment.
Why it matters
UK households and businesses face potential spending constraints as the government balances public borrowing limits, defence promises, and tax pressures in the upcoming Budget.
Read the original report — BBC News
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.