According to new forecasts from the International Monetary Fund (IMF), the United Kingdom is expected to have the second-fastest economic growth among the world’s most developed countries this year.
As per multiple reports, the growth rate is expected to be 1.3% this year and next, which isn’t very high but is still stronger than most other G7 nations.
At the same time, the IMF predicts that the UK will have the highest inflation rate among major developed countries in 2025 and 2026, mainly because of higher energy and household bills.
Inflation is expected to average 3.4% this year and 2.5% in 2026, but the IMF says this increase won’t last long and should fall to around 2% by the end of next year.
G7 refers to a group of seven of the world’s most developed and industrialized countries including, the United States, the United Kingdom, France, Germany, Italy, Canada and Japan.
However, this group does not include rapidly growing economies like China and India which are considered emerging rather than advanced economies.
IMF expects the UK’s economy to grow faster than Canada’s for now, putting the UK in second place among major developed countries.
In contrast, Germany, France, and Italy are expected to grow much more slowly, with very small increases between 0.2% and 0.9% in 2025 and 2026.
