Three things we've learnt about the UK economy from the IMF
Countries around the world have had their future economic prospects assessed by influential body, the International Monetary Fund (IMF).
TL;DR
- The US-Israel war with Iran has disrupted Middle East energy production, causing oil prices to rise and inflation to increase globally.
- Central banks, including the Bank of England, are expected to raise interest rates to combat inflation.
- The IMF revised its UK economic growth forecast for 2026 upwards to 1.3%, citing investment in AI as a positive factor.
- The UK is projected to have the lowest annual borrowing among G7 countries by 2031.
- The UK's economic growth is expected to be the second-fastest in the G7 this year, alongside Germany.
- The IMF downgraded its growth forecast for the UK for next year due to the anticipated effects of high energy prices and interest rates.
- UK inflation is forecast to average 3.3% this year and rise to 2.8% next year, with further interest rate rises expected.