The International Monetary Fund’s lead economist has urged Chancellor John Healey to “stay the course” on repairing the United Kingdom’s public finances, after the fund revised up its growth outlook for Britain.
Silvana Tenreyro, the IMF’s economic counsellor, said the UK “stands out” among G7 countries in having a plan to narrow its deficit and that continuing that work was important. Her remarks come little more than a fortnight before Healey is due to deliver his first budget.
The fund raised its forecast for UK GDP growth in 2026 to 1.3%, while cautioning that growth is likely to “edge down” in the year ahead. The upgrade to the 2026 projection reflects modestly improved expectations for Britain’s medium‑term performance, but the IMF underlined that the near‑term outlook remains uncertain.
Tenreyro also sounded a broader note of caution, saying the global economy “could soon test the limits of resilience.” The comment signals the IMF’s concern about external risks that could weigh on growth and complicate domestic fiscal plans.
Her comments are likely to be watched closely in Westminster as Healey prepares policy measures that will shape the UK’s fiscal position. The IMF’s endorsement of a plan to reduce the deficit provides external validation for consolidation efforts, even as the fund stresses the need to manage risks from slower near‑term growth and a fragile global backdrop.
Markets and policymakers will be looking for how the upcoming budget balances support for growth with the priority of fiscal repair, as well as how the government signals its response to the IMF’s guidance. The fund’s mixed message — a slightly brighter medium‑term forecast tempered by warnings about immediate pressures — frames the choices facing the chancellor in the weeks ahead.