The IMF has slightly upgraded its growth forecast for the UK economy, predicting a 1.2% increase this year and 1.4% in 2026. This follows a more robust than anticipated first quarter driven by consumer spending and business investments, even as import tariffs and higher employer taxes loom. While praising the government's reforms, the IMF warns of global uncertainties and challenges that Chancellor Rachel Reeves must navigate in balancing fiscal responsibilities. Suggestions include reducing the frequency of fiscal assessments to maintain credibility and bring stability to the economy.
"The IMF praised the government's planning reforms and infrastructure investment plans, which, if properly implemented, would substantially increase growth in the future."
"A high level of global uncertainty and volatile financial market conditions will present the Chancellor with difficult choices to balance taxation with spending in the long term."
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