The IMF has cut Britain’s growth prospects for 2026 by more than any other G7 nation as the fund warns that the country faces a heavy blow from the global energy crisis.
GDP will expand 0.8 per cent this year, 0.5 percentage points below the IMF’s previous forecast in January, according to its latest World Economic Outlook. As a result, unemployment will be driven towards its highest level in over a decade.
Chancellor Rachel Reeves will portray the UK as a “safe haven” amid geopolitical volatility as she travels to Washington for the meetings this week. But her attempts to promote the country’s attractions for international investment will clash with a downbeat outlook for the UK’s economy.