The UK’s economic growth forecast for 2024 has been revised down to 1.0%, according to Finance Minister Rachel Reeves. This announcement was made on Wednesday, citing the latest estimates from the Office for Budget Responsibility (OBR).
The revised forecast marks a significant drop from the previously anticipated growth rate of 2.0% for 2025, which was included in the OBR’s outlook published in October. During that period, Reeves had presented her first full budget.
Looking ahead, the OBR expects the UK economy to grow by 1.9% in 2026 and by 1.75% for the remainder of the decade. These figures reflect a downward adjustment in the expected growth rate for the coming years. In contrast, previous OBR projections had estimated growth at 1.8% in 2026 and 1.5% in 2027.
Reeves provided this update during a semi-annual budget review, highlighting the challenges facing the UK economy. The lower growth forecast underscores the pressure on the government to implement measures to boost economic activity and address slowing momentum.
The economic outlook remains uncertain, with factors such as global economic conditions, inflation, and interest rates continuing to influence growth prospects. The revised forecast suggests that the UK economy may face prolonged challenges in achieving higher growth rates.
In response to the adjusted projections, market analysts have expressed concerns about the potential impact on business investment and consumer confidence. Slower growth could also affect public finances, putting pressure on the government’s ability to meet fiscal targets.
Despite the lowered forecast, Reeves expressed confidence in the government’s economic strategy, emphasizing the importance of maintaining financial stability and supporting key sectors to stimulate growth. She reiterated the government’s commitment to addressing structural challenges and ensuring long-term economic resilience.
The updated economic projections reflect a cautious outlook for the UK economy, with policymakers facing the task of balancing growth initiatives with fiscal discipline. The government’s ability to navigate these challenges will be key in shaping the country’s economic trajectory in the coming years.
This article is originally published on fr.investing.com
