By bizn_fun 
The G7 are seven advanced economies – the US, UK, France, Germany, Italy, Canada and Japan – but the group doesn’t include fast-growing economies such as China and India.
The IMF is an international organisation with 190 member countries. They work together to try to stabilise the global economy.
In the IMF’s forecast for economic growth, external, the UK overtook Canada, after its trade-war-affected economy was hit by the biggest downgrades for 2025 and 2026. Germany, France and Italy are all forecast to grow far more slowly at rates of between 0.2 and 0.9% in 2025 and 2026.
Chancellor Rachel Reeves welcomed the fresh upgrade to the IMF’s outlook for the UK’s economy.
“But know this is just the start. For too many people, our economy feels stuck,” she said.
“Working people feel it every day, experts talk about it, and I am going to deal with it.”
But highlighting the inflation forecasts, shadow chancellor Sir Mel Stride said the IMF assessment on made for “grim reading”.
He said that UK households “were being squeezed from all sides”, adding: “Since taking office, Labour have allowed the cost of living to rise, debt to balloon and business confidence to collapse to record lows.”
The IMF said a slight overall upgrade for the UK in its World Economic Outlook, from its previous outlook in April, was due to “strong activity in the first half of 2025” and an improved trade outlook, partly thanks to the recently announced US-UK trade deal.