IMF lifts UK 2026 growth forecast to 1.3%, urges Healey to stay course on fiscal repair

The IMF upgraded the UK's 2026 GDP growth forecast to 1.3% but expects it to edge down next year, while warning the global economy could soon test resilience limits. IMF chief economist Silvana Tenreyro endorsed UK Chancellor John Healey's deficit-reduction plan ahead of his first budget, signaling fiscal credibility. The upgrade supports a modest growth-positive outlook for the UK, though the global warning tempers risk appetite.