IMF raises UK growth forecast for 2026 but expects slower expansion next year
The fund now expects the UK economy to grow 1.3% this year, up from its July forecast, while projecting slower growth and inflation above 2% in 2027.
The International Monetary Fund raised its forecast for UK economic growth in 2026 to 1.3% from 1.0% in its October 13 World Economic Outlook, according to the Guardian. It expects growth to ease to 1.2% in 2027, below its previous 1.3% projection.
What the IMF projects for UK inflation
The fund projects average UK inflation of 3.3% this year and 2.8% in 2027. The Guardian reports that the IMF expects core inflation to return to the 2% target only late next year.
The IMF expects higher energy prices and long-term interest rates to weigh on consumption and investment in 2027, the Guardian reports. Its growth and inflation figures are forecasts rather than measured outcomes.
Sources and context
- IMF / World Economic Outlook Annual Meetings, 2026International Monetary Fund
- IMF raises UK growth forecast as economist says Healey should ‘stay the course’The Guardian
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