International Monetary Fund (International Monetary Fund) Warned that trading stems from planned American tariffs are ready to reduce stress UKEconomic development next year.
Despite this, the global financial body has revised its development forecast for the UK for this year after a period of strong economic activities.
The IMF has said that the UK is experiencing an “economic reform”, Gross domestic product This year is expected to increase by 1.2 percent, one step with an increase of 1.1 percent predicted in April.
On Tuesday, the organization maintained its launch that the UK economy would increase by 1.4 percent in 2026.
However, IMF economists said that this global trade would come despite stress, which would eradicate 0.3 percentage points from development for the year.
The IMF stated that trade stress would weigh “continuous uncertainty, slow activity in UK trading partners and the development of the remaining US tariffs on the UK.
It was also highlighted that there is a major risk that development could be weaker than expected, due to the ability that global business uncertainty will affect supply chains and weaken private investment.
Meanwhile, IMF indicated that policy reform by UK Government Planning rules can support future development to overhala and loosen regulatory obstacles.
Its statement on the UK economy stated that an increase in structural reforms of the authorities, and the increase in infrastructure investment may increase the potential growth.
Chancellor Rhel Reeves has made the economy an important priority to help the government to fund future expenditure schemes.
On Tuesday, the Chancellor said: “The UK was the fastest growing economy in the G7 for the first three months of this year and today the IMF has upgraded our development forecast.
“We are getting results for people working through our plan for change – with three new Trade deal Protecting jobs, promoting investment and cutting prices, wage increase for three million workers through national living wages, and beating inflation up to £ 1,000 as compared to the previous year. ,
Earlier this month, Bank of England It was predicted that the UK economy would increase by 1 percent in 2025 and 1.25 percent next year, as it decreased by 4.25 percent in interest rates since May 2023 – their lowest level.
The IMF stated that the central bank should “slowly reduce monetary policy”, showing that it expects further cuts in interest rates.
