Chancellor of the Exchequer John Healey has urged international cooperation to address global economic challenges, including intensifying pressures from conflicts in the Middle East and Ukraine. Speaking at the IMF Annual Meetings in Bangkok, Mr Healey highlighted that these conflicts are contributing to rising energy prices and government borrowing costs worldwide.
The International Monetary Fund (IMF) has increased its inflation forecasts for G7 economies in 2027 by an average of nearly 0.8 percentage points compared to last year's assessment. The IMF has also lowered its 2027 growth forecasts for G7 partners by an average of nearly 0.1 percentage points compared to its pre-conflict January assessment.
Mr Healey stated that his focus will be on securing growth for all, addressing the economic impact of AI, unlocking international finance for growth in emerging markets, and supporting developing countries with their debt liquidity challenges. The UK will prioritise the AI transition by identifying barriers to adoption and managing risks.
The UK is set to host the G20 in 2027, with the G20 Leaders’ Summit taking place in Manchester and the Finance Ministers and Central Bank Governors’ meeting scheduled for Edinburgh on 8 and 9 July 2027. The Chancellor is keen to use the G20 Finance Track to make progress on these issues, with the UK's presidency priorities to be announced in early 2027.