The UK is set to be the third fastest growing economy out the world’s so-called most advanced economies this year and the next, after US and Canada.
The IMF, which is a group of 190 countries that work together to try to stabilise the global economy, said the upgrade to its global predictions included trade “front-loading” in recent months – referring to the rush of imports into the US.
It forecast global growth of 3% in 2025 and 3.1% in 2026, up from 2.8% and 3% in its April report.
However, that is still below the 3.3% rate it had projected for both years in January, prior to US President Donald Trump taking office, and the pre-pandemic historical average of 3.7%.
American firms rushed products into the country earlier this year to try to get ahead of new taxes on imports pledged by Trump.
The IMF said this created risks that could add to any future economic shocks, including companies, having too much stock, making future imports less necessary.
Also, firms may have to pay more to store goods, and there was also a risk of items becoming obsolete, it said.