UK economy growth forecast disappoints

The International Monetary Fund (IMF) predicts the UK economy will grow slower than the average of advanced economies over the next two years. The IMF's World Economic Outlook report maintains UK growth estimates at 1.3% for 2026 and 1.5% for 2027, below the 1.8% and 1.7% expected for advanced economies. The Chancellor claimed the IMF report shows the UK is on track to be the fastest growing European G7 economy, but her shadow Mel Stride accused Rachel Reeves of "gaslighting the country" arguing the forecasts indicate the UK economy was flatlining. 

City AM (20/01/2026)