IMF upgrades UK growth forecast as fears over impact of Iran war diminish

The IMF has raised its UK growth forecast for 2026 to 1%, making it the third fastest-growing G7 economy, citing a less severe impact from the Iran war and a global AI investment boom. Inflation in the UK held steady in May, easing concerns over multiple interest rate hikes. Global growth remains steady, supported by AI-driven technology demand despite energy cost pressures.