Britain’s economy should grow third-fastest among the G7 major economies this year, despite sluggish growth at the backend of 2024.
According to the International Monetary Fund, UK economic growth should sit at 1.6%, against a previous estimate of 1.5%, over 2025.
This would place the UK ahead of rival European economies, but behind the US and Canada, where respective growth of 2.7% and 2.0% was forecast.
“Our projections incorporate recent market developments and the impact of heightened trade policy uncertainty, assumed to be temporary,” IMF economic counsellor Pierre-Olivier Gourinchas said.
“But [they] refrain from making assumptions about potential policy changes that are currently under public debate.”
Estimates for UK economic growth in 2024 were trimmed though, to 0.9% from 1.1% previously.
Following a period of stagnation, surging public spending was set to buoy growth, with central bank interest rate cutting also expected to help.