Goldman Sachs has upgraded its growth forecast for the UK following the Labour Party's election victory, predicting a modest boost to demand growth.
The investment bank's note raised GDP forecasts for 2025 and 2026 to 1.6% and 1.5%, respectively, attributing the increase to potential benefits from Labour’s fiscal policies.
These include planning reforms, increased public sector investment, and closer trade ties with the EU, which could enhance housebuilding and productivity.
However, Goldman cautioned that potential tax hikes and reduced net migration might impact investment and labour supply.