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Economy · 15 October 2025

IMF upgrades UK growth forecast but warns of inflation risks

IMF upgrades UK growth forecast but warns of inflation risks

The International Monetary Fund has tweaked its outlook for the UK, raising its 2025 growth estimate to 1.3%. Still, the IMF warns inflation will remain among the highest in advanced economies, forecasting 3.4% in 2025 and 2.5% in 2026. The agency cited persistent pressures from labour costs, energy, and price pass-through. It cautioned that weak disinflation could constrain monetary policy flexibility.

Reported by Reuters · How we write briefs

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