The UK economy is set to grow by more than previously expected this year, according to new guidance from the IMF.
The latest report from the International Monetary Fund said the UK economy would expand by 1.3% in 2026, an increase on the 1% it had predicted in July.
However, growth is expected to slow in 2027 as higher energy prices and interest rates bite.
The IMF warned that the economic fallout from the US-Iran war and its impact on energy prices remains "highly uncertain".
The updated forecast comes just weeks before Chancellor John Healey is due to announce his first Budget on October 28, revealing Andy Burnham's new-look government's tax and spending plans.
Silvana Tenreyro, the IMF’s new chief economist said the UK economy "stood out" for attempted fiscal consolidation, adding: “The UK has started the consolidation process and it’s the country that stands out.
“The message is to stay the path.”
FSTE100
The UK's flagship share index, the FTSE 100, was up 131 points at 10,737 shortly after opening this morning.
Brent crude oil futures were down 1.18%, sitting at $105.39 a barrel this morning.
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