The International Monetary Fund has upgraded its outlook for UK economic growth, while warning that higher energy prices and interest rates are likely to create pressure in 2027.
The assessment comes as final preparations are being made for the first Budget under Prime Minister Andy Burham. The timing places the IMF’s updated view of the economy alongside the Government’s preparations for its forthcoming financial plans.
The supplied report does not specify the size of the growth upgrade or set out the precise forecasts for energy prices and interest rates. It does, however, identify both costs as factors expected to affect the UK economy in 2027.
The warning suggests that the improved growth outlook will be accompanied by continuing economic pressures. Energy prices and borrowing costs can affect households, businesses and public finances, although the report does not provide further detail on the likely impact in each area.
Further information on the IMF’s forecasts and the Government’s response may emerge as preparations for the Budget are completed. The latest position is that UK growth has been revised upwards, but the outlook for 2027 remains exposed to energy prices and interest rates.
