The International Monetary Fund (IMF) has upgraded its forecast for the UK's growth this year, but warned the Iran war and domestic uncertainty could hit the economy. The growth estimate has been upgraded to 1% from 0.8% for 2026 by the IMF, which said last month that the UK would be hit hardest by the Iran war among the world's advanced economies. IMF noted that the UK remained resilient but added a prolonged conflict in the Middle East risked hitting growth amid elevated prices. The upgrade comes after figures released last week showed UK economy turned in a positive performance as country's Q1 2026 GDP figures showed a rise of 1.1% year-on-year, compared to the 1% recorded in Q4 2025.

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