IMF lifts UK 2026 growth forecast to 1.3%, urges Healey to stay course on fiscal repair
The IMF upgraded the UK's 2026 GDP growth forecast to 1.3% but expects it to edge down next year, while warning the global economy could soon test resilience limits. IMF chief economist Silvana Tenreyro endorsed UK Chancellor John Healey's deficit-reduction plan ahead of his first budget, signaling fiscal credibility. The upgrade supports a modest growth-positive outlook for the UK, though the global warning tempers risk appetite.
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IMF Upgrades Global Growth Forecasts, Citing AI and Resilience Amidst Divergence
The IMF has upgraded its global growth forecast to approximately 3%, primarily driven by AI adoption and robust advanced economies, particularly in Asia. This positive outlook is tempered by warnings of diminishing global economic resilience, widening growth divergence between AI-exposed and other nations, and persistent inflationary pressures from energy prices. The overall assessment indicates a nuanced global economic environment with localized strengths and systemic vulnerabilities.