IMF and OECD warn UK over rising debt costs as growth forecast cut

The OECD downgraded UK economic growth forecasts and the IMF issued warnings about rising UK debt on September 23, as the BBC reported. IMF Managing Director Kristalina Georgieva described UK debt as climbing relentlessly, highlighting the country's fiscal challenges.

Growth and fiscal outlook

The UK economy is expected to grow only 1% next year, according to the revised OECD forecast. The warnings come ahead of the UK government's autumn budget statement, where Chancellor Rachel Reeves will need to address the country's fiscal position. Rising debt servicing costs have become a significant pressure on public finances, limiting government room to increase spending on public services.