Finance Minister Rachel Reeves welcomed the revision as positive proof that the government maintains a solid fiscal strategy.
However, the institution warned that mounting domestic uncertainty and leadership instability could eventually stall consumer spending.
Strong performance early this year and upward statistical revisions prompted this modest upgrade from the previous 0.8% projection.
The organization expects inflation to approach 4% before gradually returning to the official 2% target by next year.
The central bank can likely manage this transition smoothly without implementing further interest rate hikes anytime soon.
Meanwhile, political speculation pushed national borrowing costs to noticeable highs, highlighting deep investor concern regarding long-term discipline.
The global fund strongly advises the administration to maintain its current deficit reduction plans to protect market stability.
Additionally, experts suggest that any upcoming cost-of-living subsidies must remain strictly targeted rather than funded through new debt.
