The International Monetary Fund (IMF) has concluded its 2026 Article IV Consultation with the United Kingdom, stating that the economy remains resilient despite weaker near-term growth linked to higher energy prices following the war in the Middle East.
The IMF forecasts UK GDP growth of 1.0% in 2026, while supporting the government’s fiscal strategy and calling for monetary policy to remain data-dependent. It also said sustained structural reforms would be essential to improve productivity, investment and long-term living standards.
Key developments
- UK GDP is projected to grow 1.0% in 2026, following 1.4% growth in 2025.
- Inflation is expected to peak above 3.5% by late 2026 before returning to target by the end of 2027.
- The IMF endorsed continued fiscal consolidation, targeted energy support and reforms to skills, trade and artificial intelligence adoption.
ℹ️ IMF
Follow on social media TikTok@tut0ughInstagram@tut0ugh Threads@tut0ugh X@tut0ugh YouTube@tut0ugh
