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Mon, 18 May 2026

Mon, 18 May 2026 UK growth forecast upgraded by IMF but risks remain

Growth has been upgraded from 0.8% to 1% for 2026 in the influential body's latest forecast.

* IMF has upgraded UK's growth forecast to 1% from 0.8% for 2026
* Iran war and "domestic uncertainty" could hit the economy, with higher energy and food prices a risk
* Inflation will increase temporarily due to higher energy prices, but interest rates don't need to be raised this year
* UK's commitment to borrowing rules and deficit reduction is expected to help protect its financial credibility
* Government has welcomed the upgrade, with Chancellor Rachel Reeves saying it shows their economic plan is working
* IMF suggests that spending restraint will be needed in the long term due to rising pressures on government spending.