IMF upgrades UK economic outlook to become 'fastest growing' major economy in Europe

Reeves promises ‘relentless reform’

The International Monetary Fund (IMF) has upgraded its economic outlook for the UK and now forecasts it will be the fastest growing economy in Europe.

According to the January 2025 update to the IMF Global Economic Outlook, the UK economy is expected to grow by 1.6% this year and 1.5% in 2026. IMF backs Rachel Reeves' 'sustainable' £40bn tax hikes This compares to the previous outlook in October 2024, when the IMF forecast growth of 1.5% for the current year. Chancellor Rachel Reeves said that, apart from the US, the UK was the only G7 economy to have its growth forecast upgraded for the year. Additionally, she noted that the IMF's revised economic outlook meant the UK is "forecast to be the fastest growing major European econ...