IMF upgrades UK forecast but notes Brexit terms are 'unsettled'

Performance better than expected, fund says as it cuts 2018 outlook and cites Trump protectionism as risk to global economy

The International Monetary Fund has upgraded its forecasts for the UK economy this year after the latest signs that businesses and consumers have shrugged off the Brexit vote.

Unveiling its new forecasts on the eve of a key speech by Theresa May on the Brexit process, the Washington-based fund also cut the outlook for 2018, reflecting widespread uncertainty over Britain's future outside the EU.

Related: Sterling skids to three-month low on hard Brexit concerns