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IMF lifts UK 2026 growth to 1%, inflation 2%

7/9/2026

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Story summary
  • IMF raised its 2026 UK growth forecast to 1% and kept the 2027 projection at 1.3%, and expects inflation to hit the 2% target by mid-2027.
  • Chancellor Rachel Reeves said the UK is the only G7 nation with an upgraded IMF forecast, citing AI, regional growth and EU trade.
  • Incoming Prime Minister Andy Burnham is expected to inherit an economy less harmed by the Middle-East war.