IMF upgrades United Kingdom growth forecast ahead of budget

The International Monetary Fund has raised its economic growth forecast for the United Kingdom to 1.3 percent for 2026, the Guardian and the Times both reported on October 13. However, the Guardian reported that the fund expects growth to edge down in the following year. [1][2]

Silvana Tenreyro, the economic counsellor for the IMF, stated that the United Kingdom stands out among G7 nations for having a clear plan to narrow its deficit, according to the Guardian. She advised Chancellor John Healey to stay the course in repairing public finances just weeks before his first budget. [1]

The IMF also issued a broader warning that the global economy could soon test the limits of resilience, the Guardian reported. At the same time, the Times noted that the fund warned Healey against increasing government spending. [1][2]