The UK is projected to be the second-fastest-growing G7 economy this year, according to new forecasts from the International Monetary Fund (IMF), despite anticipated higher inflation in upcoming years.

• The IMF predicts UK economic growth of 1.3% for 2025 and 2026.
• UK inflation is expected to be the highest in the G7 in 2025 and 2026, driven by energy costs, averaging 3.4% this year and 2.5% in 2026 before falling to 2% by the end of next year.
• Chancellor Rachel Reeves welcomed the IMF's upgraded outlook, while shadow chancellor Sir Mel Stride highlighted the "grim reading" of the inflation forecasts.