UK growth forecast upgraded in latest IMF report

The International Monetary Fund (IMF)has released the latest World Economic Outlook report to coincide with the annual meeting of the IMF and World Bank Group in Thailand.

13 Oct 2026

The International Monetary Fund (IMF)has released the latest World Economic Outlook report to coincide with the annual meeting of the IMF and World Bank Group in Thailand.

The report showed projected UK economy growth of 1.3% for 2026, an increase from the 1% predicted in July and the equal second highest in the G7. Growth is expected to slow in 2027 to 1.2%.

On a global scale, activity is projected to grow at 3.1% in 2026 and 3.4% in 2027. Global headline inflation is forecast to rise to 4.7% in 2026, largely driven by the war in the Middle East before falling back to 4.1% in 2027.

Silvana Tenreyro, Economic Counsellor and Director of the Research Department at the IMF commented in an accompanying blog to the report that the global economy has proved resilient against a 'barrage of shocks' from the last seven years including the pandemic and wars in Ukraine and the Middle East but states the 'this resilience is under strain'.

At a press conference in at the annual meeting in Bangkok, Tenreyro praised the UK for its clear plans to reduce government borrowing:

'The UK has already started the (fiscal) consolidation path... it is ?on that trajectory, and the message for the UK is simply stay the course.'

Internet link: IMF