IMF Raises UK Economic Growth Forecast for 2026; 2027 Estimate Cut on Higher Energy Costs

11:24 PM EDT, 10/12/2026 (MT Newswires) -- The International Monetary Fund lifted its UK economic growth estimate for 2026, but reduced that for 2027 due to the expected impact of higher energy costs and interest rates on consumption and investment. In its World Economic Outlook update published Tuesday, the IMF now expects the UK economy to grow 1.3% in 2026, up from the 1% forecast in July. For 2027, the growth estimate was down to 1.2% from the prior 1.3%. Meanwhile, the inflation rate in the UK is expected to come in at 3.3% in 2026, before easing to 2.8% in 2027.