UK economic growth forecast slashed as Trump’s tariffs hit Britain harder than Europe
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Trump tariffs will slash UK’s economic growth, warns IMF
- The International Monetary Fund (IMF) has downgraded the UK's economic growth forecast, predicting a 0.5 per cent contraction in 2025 and 0.1 per cent in 2026.
- The IMF has attributed this to the impact of Donald Trump's trade war, higher inflation, and increased energy costs.
- The IMF predicts the UK economy will grow by just 1.1 per cent in 2026 and 1.4 per cent in 2027, slower than previous estimates, and will be more severely impacted than other European nations.
- Chancellor Rachel Reeves will meet with US Treasury Secretary Scott Bessent to discuss trade tariffs and seek a deal to mitigate the negative economic effects.
- The IMF's downgrade increases pressure on Ms Reeves to make further spending cuts or tax hikes in the upcoming autumn Budget.