Chancellor Rachel Reeves is traveling to Washington DC to meet with the International Monetary Fund (IMF) and World Bank, aiming to attract foreign investment to the UK. Her visit occurs as the IMF has revised its inflation forecasts upwards for Britain, projecting higher price increases than previously anticipated in 2025 and 2026. Despite this downgrade, Reeves intends to present the UK as a stable and attractive destination for investors, emphasizing the government's commitment to fiscal discipline and showcasing initiatives like the National Wealth Fund to foster a business-friendly environment.
The IMF now forecasts UK inflation to average 3.4% in 2025, an increase from the earlier projection of 3.2%, and expects it to moderate to 2.5% in 2026, still above the previous forecast of 2.3%. These revised figures suggest UK households will experience the most significant price hikes among G7 economies over this period. Concurrently, the IMF has slightly improved its UK economic growth forecast for 2025 to 1.3% from 1.2%, though the outlook for the following year has been trimmed. The UK is still predicted to have the second-fastest GDP growth in the G7 this year, behind the United States.
Reeves' agenda also includes a Ukraine investment roundtable to garner support for the war-torn country and meetings with American financial institutions to promote investment opportunities in the UK. Experts note that global trade friction, rising borrowing cos... download the app to read more
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