1451 GMT - The International Monetary Fund upgraded its economic-growth forecast for the U.K., reflecting momentum in the run-up to the outbreak of the war in Iran. The IMF now expects gross domestic product to rise 1.0% this year, from 0.8% it forecast in April. For 2027, growth expectations are unchanged at 1.3%. U.K. activity expanded 1.4% in 2025, with this year's slowdown due to rising energy prices, tighter-than-anticipated monetary policy and uncertainty weighing on private spending, the IMF's Petya Koeva Brooks says. But at a time when U.K. public finances are in the spotlight, the government's fiscal strategy strikes the right balance between deficit reduction and growth-friendly spending, including frontloading of infrastructure investments, she says. (edward.frankl@wsj.com)

(END) Dow Jones Newswires

July 08, 2026 10:51 ET (14:51 GMT)

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