Key insights on UK's economy from IMF

The IMF reports that the UK is weathering global economic challenges better than expected, with a projected growth of 1.3% in 2026. The UK is also highlighted as one of the best performers among major economies in reducing borrowing, expected to have the lowest G7 debt levels by 2031. However, forecasts suggest that rising energy prices and inflation could slow growth and increase inflation in the UK next year, leading to potential interest rate hikes.

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