The IMF, whose purpose is to bring its 190 members together to work on maintaining global economic stability, is a respected forecaster. However, uncertainties, ranging from geopolitics to the weather, often derail expectations.
According to the Fund’s latest predictions, unveiled as government officials gather in Washington DC, the UK appears to be weathering the storm better than others.
The IMF predicts that in 2025 the UK economy will outperform other G7 economies, apart from the US, in what has been a torrid year for trade and geopolitical tensions.
The G7 are a grouping of the world’s richer countries, including the US, Canada, Germany, France, Italy, the UK and Japan, but not fast-growing economies such as India and China.
Despite edging ahead of most rivals, UK economic growth rates are expected to remain modest at 1.3% for this year and next.
Moreover, on a per head basis economic output is only set to grow 0.4% this year and 0.5% in 2026, putting the UK at the bottom of the G7 league table.
Chancellor Rachel Reeves who arrived in Washington on Tuesday, said people sensed the economy was “stuck”.
“Working people feel it every day, experts talk about it, and I am going to deal with it,” she said.
She will use the IMF gathering to try to provide reassurance over the UK’s financial stability and tout the country as an attractive place for investment.
