UK ‘turns corner’ as growth for next year only behind US and Canada of G7 counterparts
According to the International Monetary Fund (IMF), the UK is expected to achieve stronger economic growth than most G7 countries next year; followed only by the USA and Canada.
The influential economics body’s latest report predicts Britain’s GDP growth will surpass Japan, Italy and France while equaling that of Germany.
The IMF kept Britain’s 2026 and 2027 economic growth forecasts at 1.3 percent and 1.5 percent, respectively. Global growth is predicted to be 3.3 percent in 2026 and 3.2 percent in 2027.
The IMF, which had previously said that inflation would increase in the UK, stated that inflation is expected to return to the target by the end of 2026 due to the weakening labor market.
He said the global economy remained “remarkably resilient” and there were signs that technology-related investment was contributing to UK growth, but not on the same scale as in the US.
While the IMF did not change its economic forecast for this year and next year, it increased its 2025 forecast to 1.4% from the previous 1.3%.
Chancellor Rachel Reeves said: “After years of decline, this is the year the country turns a corner.
“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 in Europe this year and next.”
He added: “Thanks to the stability we’ve brought to the economy and the investments we’ve unlocked, we continue to challenge forecasts and reduce the cost of living for families by lowering bills.”
Shadow Chancellor Sir Mel Stride said: “A 0.1% rise is not a victory and the fact that Rachel Reeves is celebrating shows just how desperate she is.
“The economy is stagnating.”
