IMF lifts UK growth forecast for 2025; markets welcome US delay to EU 50% tariffs – as it happened

Rolling coverage of the latest economic and financial news, as IMF releases latest healthcheck on UK economy

• Rachel Reeves should ease fiscal rules to prevent emergency spending cuts, IMF says

• EU hopes for quick deal to resolve US trade war after Trump delays 50% tariffs

• Toyota to move some GR Corolla production to UK from Japan

  
  

Ouch! Germany's economy is on track for its worst performance in post-war history, a new report shows.

The German Chamber of Commerce and Industry (DIHK) predicted this morning that Europe's largest economy will contract by 0.3% this year, Reuters reports. That would be the third annual contraction in a row, although not as bad as the 0.5% fall in GDP which the DIHK predicted back in February.

A mood of cautious relief is spreading after the long weekend, amid hopes for more fruitful trade negotiations between the United States and its global partners. There are no post bank holiday blues for the London market, with the Footsie in striking distance of the record high reached in February. More positive vibes are pulsing about the outlook for the global economy, with hopes that more scores can be etched on the doors of trade talks.

US futures point to a higher open on indices, as optimism spreads after the holiday break. Trump once again has pressed the pause button, this time on proposed 50% tariffs on imports from the European Union, which caused nervousness at the end of last week.