UK growth forecasts slashed by IMF as Iran war hurts global economy – as it happened

International Monetary Fund has lowered its forecast for UK growth in 2026 and 2027, due to Iran war and weak growth in late 2025 Iran war escalation could trigger global recession, IMF warns Newsflash: The International Monetary Fund has cut its forecast for UK growth this year and in 2026, as the Iran war hurts the global economy. The UK has been hit by the sharpest growth downgrade in the G7 in the IMF’s new economic forecasts, just released, at its spring meeting in Washington DC. UK GDP is now expected to rise by just 0.8% this year, down from a previous forecast of 1.3% – a bigger downgrade than other major economies. The UK’s growth forecast for next year has been cut from 1.5% to 1.3%. double quotation markIn the United Kingdom, the war and a slower pace of monetary easing mean that growth is projected to decline from 1.3 percent in 2025 to 0.8 percent in 2026, a downward revision of 0.5 percentage point relative to the October 2025 forecast. Growth is projected to recover to 1.3 percent in 2027, slower than expected before the war as the impact of higher energy prices linger. In a blow to households, IMF economists also predict inflation will rise towards 4%. But, in