The International Monetary Fund has raised its growth forecast for the UK to 1.3% for this year, an increase of 0.3 percentage points from its previous estimate. This comes as the UK economy has shown stronger-than-expected performance in early 2026, although the IMF cautioned about a potential slowdown in 2027 due to high energy prices and rising interest rates.
In contrast, Asian markets are experiencing significant sell-offs, particularly in semiconductor stocks, raising concerns about the impact of AI developments on global financial stability. The IMF highlighted that the UK may be more insulated from these risks compared to other regions, although investors with US holdings could be affected.