UK Economy Steady Amidst Tariff Uncertainty: Projections for 2025 Unchanged
The British economy is forecast to grow by 1% in 2025, with the Bank of England expected to make two interest rate cuts. Despite tariff concerns, projections have remained stable, aligning with the Office for Budget Responsibility. Inflation is anticipated to remain above 3% for now.
According to a Reuters poll of economists, the British economy is set to grow by a modest 1% this year, with interest rate cuts expected from the Bank of England in 2025.
A survey, completed ahead of Finance Minister Rachel Reeves' significant spending review, projects health and defense spending to see the largest increases. The economy is predicted to grow by 1.0% this year and slightly accelerate to 1.2% in 2025.
Despite tariff uncertainties impacting key industries, the UK economy has shown resilience, with growth slowing yet remaining steady. Inflation is forecast to stay above 3% for the short term.
(With inputs from agencies.)
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