The International Monetary Fund (IMF) has revised its economic growth forecast for the United Kingdom upward for the current year. However, it cautioned that rising "domestic uncertainty," as the government navigates significant political turmoil, could negatively impact consumer spending and investment. The IMF now projects the UK economy will expand by 1.0% this year. Chancellor of the Exchequer Rachel Reeves stated this adjustment indicates the struggling Starmer-led government is making progress. This revision follows the IMF's prediction last month of 0.8% growth, which was part of a broader downward revision of the global economic outlook reflecting risks associated with the conflict in Iran. Despite the upgraded forecast, the UK's economic growth rate is still expected to slow compared to 2025. In its annual assessment of the UK economy, the IMF noted, "Although the UK economy has shown resilience in recent years, the war in the Middle East is weakening the short-term outlook." The organization attributed the improved forecast for 2026 primarily to pre-war economic momentum, which is reflected in recent stronger-than-expected growth data and subsequent revisions.