UK economic growth forecast revised to 1% for 2025

Investing.com -- The UK’s economic growth projection for this year has been revised to 1.0%, according to Finance Minister Rachel Reeves. The recent announcement, made on Wednesday, referenced the latest estimates from the Office for Budget Responsibility (OBR).

This new forecast is significantly lower than the previously anticipated 2.0% growth for 2025, which was part of the OBR’s outlook published in October. During this time, Reeves presented her first comprehensive budget.

Looking ahead, the OBR anticipates that the economic output will increase by 1.9% in 2026 and 1.75% for the remainder of the decade. Reeves provided this information during a half-yearly budget update.

These new predictions differ from the OBR’s prior growth expectations of 1.8% in 2026 and 1.5% in 2027. The updated forecasts reflect a downward adjustment in the expected economic growth rate for the UK in the coming years.

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