Chancellor of the Exchequer John Healey has called for closer international cooperation to tackle global economic headwinds and strengthen growth, as he attended the IMF Annual Meetings in Bangkok.
Conflict in the Middle East and Ukraine is pushing up energy prices and government borrowing costs worldwide, hitting households and businesses.
The IMF has raised its 2027 inflation forecasts for G7 economies by an average of nearly 0.8 percentage points compared to last year, and cut its 2027 growth forecasts for G7 partners by an average of nearly 0.1 percentage points compared to its pre-conflict assessment in January.
Mr Healey said the UK has shown strong resilience, pointing to the IMF’s upgrade to UK growth for 2026 and its assessment that UK deficit reduction stands out. Government borrowing is falling to its lowest level in six years this year, with the UK forecast to have the lowest deficit in the G7 by 2029.
Speaking in Bangkok, the Chancellor set out three areas where international cooperation can build global resilience:
• driving economic growth, including by harnessing AI
• building resilience to crises and shocks
• unlocking international finance for development
He said AI is a general-purpose technology that must be harnessed as one of the greatest innovations of our time, with the UK prioritising the AI transition by identifying barriers to adoption and managing risks.
The Chancellor said he will use the UK’s presidency of the G20 to advance progress through the Finance Track. The UK’s full priorities for the G20 presidency will be announced in early 2027.
Chancellor John Healey said: The UK economy is resilient and my Budget will protect Britain’s resilience through this turbulent time. Conflict in the Middle East and Ukraine is hitting people around the world, pushing up energy prices and the cost of government debt.
Britain and our allies can face these challenges together. I will work with international partners to keep trade moving, strengthen resilience and deliver good growth for all. Fiscal discipline is the foundation for supporting families and businesses today, and building hope for the future.
The Prime Minister has said the UK will use its hosting of the G20 next year to tackle major global challenges such as AI. The Finance Track will look at what AI means for growth and jobs, alongside action to strengthen economic resilience and support growth in developing economies.
The G20 Finance Ministers and Central Bank Governors’ meeting will be held in Edinburgh on 8 and 9 July 2027.
