Rachel Reeves branded ‘delusional’ as UK growth to be slower than developing countries | UK | News
Rachel Reeves’ insistence that the UK economy is “turning the corner” has been branded “desperate and delusional” after a new report showed the country is falling behind some G7 rivals. The International Monetary Fund’s (IMF) 2026 and 2027 growth forecasts for the UK remained at 1.3% and 1.5%, respectively, unchanged compared to the previous forecasts in the last outlook report. While the figures show Britain is on track to grow faster than countries including Italy, France and Japan, it continues to lag behind the US and Canada in terms of GDP production. The UK and Italy were also the only G7 countries not given a growth rating for 2026.
Chancellor Rachel Reeves focused on the report’s confirmation that the UK economy grew 0.1% more than expected last year but reached 1.4%, beating the IMF’s forecast of 1.3%. He hailed the news as evidence of “the stability we are bringing to the economy and the investment we are unlocking”, leading critics to brand his optimism “delusional”.
Responding to the new report, Ms Reeves said: “After years of decline, this is the year the country turns a corner.” he said.
“The IMF has lifted our growth for the third consecutive year since April 2025, putting us on track to become the fastest-growing G7 economy this year and next year.
“Thanks to the stability it has brought to the economy and the investments we have made available, we continue to exceed forecasts and reduce the cost of living for families by reducing bills.”
But Shadow Chancellor Sir Mel Stride hit back at these triumphant comments and insisted “the economy is stagnating”.
“A 0.1% increase is not a victory and the fact that Rachel Reeves is celebrating shows how desperate she is,” he said.
Conservative business spokesman Andrew Griffith also had harsh words for the Chancellor, suggesting he must be “delusional if he thinks there is anything to celebrate”.
“The IMF confirms that UK growth in 2026 and 2027 will be slower than that of the US, Canada and even most developing countries,” he said. This Money.
“The bottom line is that Brits are getting poorer. The only countries we’re actually beating are the snail-like EU countries, which makes it all the more strange that Labor wants to tie us closer to them.”
IMF forecasts also suggest that Britain’s inflation (currently the highest in the G7) will fall to the 2% target by the end of this year, but only because “a weakening labor market continues to exert downward pressure on wage growth”.
While the report made no mention of the threat of sanctions against countries that oppose US President Donald Trump’s takeover of Greenland, it warned that “trade tensions could flare, prolong uncertainty and further weigh on activity” and potentially lead to economic turbulence in the coming months.
