The International Monetary Fund has downgraded the UK’s growth forecast by the G7. The IMF’s latest global forecasts have downgraded the UK’s growth projection for this year by 0.5% to only 0.8%…
| Country | 2026 Forecast | Diff. from Jan 2026 |
|---|---|---|
| UK | 0.8 | -0.5 |
| Germany | 0.8 | -0.3 |
| France | 0.9 | -0.1 |
| Italy | 0.5 | -0.2 |
| Japan | 0.7 | 0.0 |
| US | 2.3 | -0.1 |
| Canada | 2.5 | -0.1 |
“In the United Kingdom, inflation, which in 2025 increased partly because of one-off changes in regulated prices, is expected to pick up again temporarily toward 4 percent before returning to target by the end of 2027 as the effects of higher energy prices fade and a weakening labor market continues to exert downward pressure on wage growth.”
It also says the unemployment rate will hit 5.6% this year. Big gulps can be heard from the Treasury…
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“Obviously no sensible person is a supporter of the Iranian regime, but to start a conflict without being clear what the objectives are and not being clear about how you are going to get out of it, I do think that is a folly and it is one that is affecting families here in the UK but also families in the US and around the world.”