IMF upgrades UK growth forecast as fears over impact of Iran war diminish
July update projects GDP growth of 1% this year, making UK the third fastest-growing economy in the G7
AI Summary
The International Monetary Fund upgraded its UK growth forecast to 1% for 2026, making Britain the third fastest-growing economy in the G7, as concerns over the economic impact of the Iran war eased. The IMF left its 2027 UK forecast unchanged at 1.3%, while official data showed inflation unexpectedly holding steady in May with markets pricing in only one interest rate rise by spring.