17 Oct 2025The UK is set to be the second-fastest-growing of the world's most advanced economies this year, according to new projections from the International Monetary Fund (IMF). The IMF also predicts the UK will face the highest rate of inflation among G7 nations both this year and next, driven by rising energy and utility bills. The forecasts are part of the Fund's twice annual outlook for the global economy. UK economic growth rates are expected to remain modest at 1.3% for this year and next. In addition, 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 of the Exchequer, Rachel Reeves said: 'This is the second consecutive upgrade to this year's growth forecast from the IMF. It's no surprise, Britain led the G7 in growth in the first half of this year, and average disposable income is up £800 since the election. 'But know this is just the start. For too many people, our economy feels stuck. Working people feel it every day, experts talk about it, and I am going to deal with it. Working together, we can deliver a Britain built for all.'