The British economy could experience a small boost, with the International Monetary Fund (IMF) upgrading its growth predictions by just 0.1 per cent for 2025. Growth is expected to sit at 1.2 per cent this year and 1.4 per cent for 2026, according to the organisation\u2019s latest World Economic Outlook forecasts. <\/p>\n It came as the IMF said the global economy would be more resilient than it expected in May. Global growth<\/a> is set to be 3 per cent this year and 3.1 per cent next year, up from 2.8 per cent and 3 per cent respectively. <\/p>\n Like Britain, Germany and Italy have both had their growth upgraded by 0.1 per cent for 2025. However, both have received no upgrade for 2026. Meanwhile, Canada was handed a marginally bigger upgrade of 0.2 per cent in 2025 and 0.3 per cent in 2026, taking its growth to 1.6 per cent in 2025 and 1.9 per cent in 2026. <\/p>\n open image in gallery<\/p>\n Rachel Reeves has been accused of talking down the economy (PA Wire)<\/p>\n The world growth upgrade reflects what the IMF called \u201cfront-loading\u201d, with countries rushing to ship goods to the US to get ahead of Mr Trump\u2019s tariffs. <\/p>\n This has happened as businesses and households tried to prepare for planned increases following Mr Trump\u2019s \u201cliberation day\u201d announcements in April, according to the report.<\/p>\n The IMF said front-loading had \u201cshaped economic activity in the first half of the year\u201d, adding that it was \u201ccreating exposures that could amplify the impact of any potential negative shocks\u201d.<\/p>\n For example, firms could end up having too much stock, therefore pushing down future imports, or it could lead to additional holding costs or the risk of items becoming obsolete.<\/p>\n Meanwhile, the growth upgrade since April was also driven by US tariffs being lowered since higher rates were first announced by Mr Trump, alongside improved conditions in the financial markets.<\/p>\n This came after the US struck new trade deals, including one with the UK and, most recently, the EU. However, the chancellor, Rachel Reeves, faces tough questions over why the UK\u2019s growth rate continues to flatline while other economies benefit from the US trade deals.<\/p>\n open image in gallery<\/p>\n The IMF said trade deals between the US and partners had softened the impact of Donald Trump\u2019s tariffs (AFP\/Getty)<\/p>\n The chancellor has been accused of stalling growth, with critics pointing to her so-called \u201cdoom and gloom\u201d attitude towards the UK economy and last year’s tax-heavy October Budget.<\/p>\n She has a multi-billion-pound black hole to fill ahead of this autumn\u2019s Budget and is considering a range of potential tax hikes and spending cuts to balance the country\u2019s books. <\/p>\n The Conservatives said that under Labour \u201cgrowth is going nowhere\u201d, adding that the IMF report confirms that. <\/p>\n Shadow chancellor Mel Stride said: \u201cBusiness confidence has collapsed all because of the chancellor\u2019s reckless economic choices.<\/p>\n \u201cYou can\u2019t tax your way to growth \u2013 we need to back British businesses and workers.<\/p>\n![\"Rachel](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/07\/88f4014aa8f110dcb6d8a609b6f5b76bY29udGVudHNlYXJjaGFwaSwxNzUzNTM2ODE3-2.80763599.jpg\")
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