Chancellor of the Exchequer, :
“The IMF upgrading its growth forecasts and backing our fiscal
strategy is yet more proof that this Government has the right
economic plan.
“The choices I have made as Chancellor mean our economy is in a
stronger position as we deal with the costs of the war in Iran.
Putting our stability at risk when signs of progress are emerging
would leave families and businesses worse off.
“Instead, this Government is getting on with the job of building
an economy that is stronger, more resilient, and prepared for the
future.”
Notes to editors
Conclusions for the IMF's report:
- The IMF welcomes the government's
‘prudent approach' to fiscal measures in response to
the energy crisis and says that our
fiscal strategy strikes ‘a good balance between
deficit reduction and growth-friendly spending.'
- The findings recommend sticking to the planned deficit
reduction and proactively developing contingency measures to
help protect fiscal credibility.
- The IMF expects the UK's deficit to fall in every year
between 2025 and 2031, falling to the joint-lowest level (with
Canada) in the G7 by 2029 - showing we have the right economic
plan.
- The IMF forecast that the UK will have the fastest cumulative
growth among European G7 economies across
2026-27.
Further background on the economy:
- We are the fastest growing economy in the G7 so far this
year.
- Q1 2026, GDP per capita grew at the fastest pace for a single
quarter since Russia's invasion of Ukraine.
- Public Sector Net Borrowing (PSNB) was £19.8 billion lower in
2025-26 compared to 2024-25.
- We have increased our headroom against the stability rule to
£23.7bn so that we can weather shocks and keep borrowing costs
down.
- We are set to reduce the deficit by £20bn from 24-25 to 25-26
- from 5.2% to 4.3% of GDP.
