- The IMF's Article IV surveillance report has stated that
economic recovery in the UK is underway, with growth projected at
1.2% in 2025 before gaining momentum next year.
- The IMF also endorsed the government's fiscal plans which it
says strike a balance between supporting growth and safeguarding
fiscal sustainability, and the Growth Mission covers the right
areas to lift productivity.
Since the election the government has been clear on the need to
kickstart economic growth, built on stability and investment to
deliver on the Plan for Change. The publication of the IMF's
first Article IV surveillance report on the UK economy since last
year's election reveals that the UK's economic recovery is
underway, and will see the third fastest economic growth in the
G7 and the fastest growth among European G7 countries.
The IMF have also endorsed the government's fiscal framework as
growth-friendly, as well as appropriately accommodating spending
pressures and investment needs, while safeguarding fiscal
sustainability.
Structural reform and government strategy
Through the Growth Mission, the government is restoring
stability, increasing investment, and reforming the economy to
drive up prosperity and living standards across every region of
the UK.
The IMF recognised the bold reforms that we have launched since
taking office in July 2024. We have been clear that planning
reform is central to unlocking private investment. The IMF has
stated that the UK's new industrial strategy has real potential
to unlock private investment and boost UK productivity in key
sectors.
Trade, global integration, and external
environment
Given the high level of uncertainty emanating from the external
environment, the IMF has stated that the government should
continue advocating for a stable global trading system and
welcomes recent efforts to strike trade agreements with key
partners, including the EU, India, and the US, demonstrating a
commitment to finding common ground and establishing a more
predictable environment for UK exporters.
