The IMF has forecast that the UK will be the second-fastest-growing economy among the G7 nations this year - behind only the USA - despite ongoing global trade tensions. The IMF projects UK growth at a modest 1.3% in both 2025 and 2026, signaling resilience but also stagnation compared with past performance. Per capita growth, at less than 0.5%, remains the weakest in the G7. Inflation, however, continues to cloud the outlook: the UK is expected to record the highest price rises among advanced economies, driven by elevated energy and utility costs. The IMF anticipates inflation will ease to 2% by late next year, yet households still face financial strain. Rachel Reeves, attending the IMF’s Washington meetings, pledged to tackle what she called a ‘stuck’ economy, while the Bank of England urged caution on rate cuts. Amid geopolitical uncertainty and trade disruptions, Britain’s challenge is how to sustain growth without deepening inequality. Reeves has recently hinted that she may raise some taxes in the November budget: see