UK growth forecast upgraded by IMF but risks remain
The International Monetary Fund has upgraded its growth forecast for the UK to 1% for 2026, citing resilience despite ongoing risks. However, the IMF warned that the Iran war and domestic uncertainties could negatively impact the economy. Chancellor Rachel Reeves welcomed the upgrade, emphasizing the government's commitment to economic growth.
- ▪The IMF has raised the UK's growth estimate from 0.8% to 1% for 2026.
- ▪The organization noted that the UK economy is more vulnerable to global price increases due to its reliance on energy imports.
- ▪Chancellor Rachel Reeves stated that the growth upgrade reflects the government's effective economic plan.
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| Original publisher | BBC News — Business |
| Canonical URL | https://www.bbc.com/news/articles/cm2p72mmddyo?at_medium=RSS&at_campaign=rss |
| Publication time | Mon, 18 May 2026 11:00:35 GMT |
| Retrieval time | 2026-05-18T11:04:56.482Z |
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UK growth forecast upgraded by IMF but risks remain Just nowShareSaveAdd as preferred on GoogleFaisal Islam & Michael RaceEconomics editor & business reporterGetty ImagesThe International Monetary Fund (IMF) has upgraded its forecast for the UK's growth this year, but warned the Iran war and "domestic uncertainty" could hit the economy.The growth estimate has been upgraded to 1% from 0.8% for 2026 by the influential body, which said last month that the UK would be hit hardest by the Iran war among the world's advanced economies.In its latest forecast, it said the UK "remained resilient" but added a prolonged conflict in the Middle East risked hitting growth and resulting in "higher energy and food prices"."Domestic uncertainty could also add to the already volatile global environment,…
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