IMF Cuts UK Outlook More Than European Peers After Tariff Shock

The International Monetary Fund cut UK growth prospects over the next two years by more than any leading European nation as US tariffs threaten a “major shock” to the global economy.

In new forecasts published Tuesday, the global watchdog said there had been a “significant downward revision” and warned that both Britain and the US “stand out in both the direction and the magnitude” of the anticipated inflation overshoot this year.

The fund also urged countries with dangerously high debt burdens to consider tax rises and spending cuts if the slowdown threatens budgetary sustainability. The UK has been under scrutiny ...