IMF Raises UK Growth Forecast

The International Monetary Fund (IMF) has raised its forecast for UK economic growth this year, despite warning that disruptions from US tariffs could hamper economic performance.

In its annual Economic Performance Report, the fund revised its forecast for UK GDP growth for 2025 to 1.2%, up from 1.1% in its forecast issued last month.

The fund noted that disruptions associated with the implementation of tariffs imposed by US President Donald Trump will lead to “persistent uncertainty and slowdowns in activity in the UK’s trading partners, in addition to the direct impact of remaining US tariffs on the UK.”

The report also warned that trade uncertainty could disrupt supply chains and lead to a decline in private investment, increasing the risk that growth will be weaker than expected.

The UK economy grew by 0.7% in the first three months of this year, exceeding expectations, thanks to a significant increase in aircraft and mechanical equipment production.