UK anticipates slower economic growth at 0.6% in 2024-IMF

Posted on February 5, 2024   |  

The UK is expected to experience slower economic growth than initially predicted, ranking poorly among G7 nations.

Projections indicate a modest growth of 0.6% this year and 1.6% next, positioning the UK as the second-worst G7 performer for the current year and joint third in 2025.

From 2019 to the end of 2021, the UK's economy expanded by 0.6%, with a 0.4 percentage point reduction in growth expectations for 2025 due to challenges in catching up following recent statistical revisions.

A slight improvement in growth is foreseen this year as the impact of high energy prices diminishes. 

Additionally, a decrease in inflation next year is expected to aid the recovery of real incomes, gradually accelerating economic growth.

Globally, the forecast predicts a 3.1% growth this year and 3.2% next year, slightly below the 3.8% average between 2000 and 2019 but 0.2 percentage points higher than the IMF's previous October forecast.