Summary
The International Monetary Fund (IMF) predicts that the UK's economy will grow faster than most G7 countries, except the United States, over the next two years. Growth in the UK is projected at 1.3% for both years, with inflation expected to rise significantly in 2025 and 2026. The IMF also highlighted potential economic risks, such as the impact of tariffs and uncertainties in the tech industry.
Key Facts
- The UK is expected to be the second-fastest-growing G7 economy in 2023 and 2024, behind the US.
- The UK's economic growth is projected at 1.3% for both years.
- Inflation in the UK is expected to increase, reaching the highest in the G7 by 2025 and 2026.
- The IMF forecasts inflation to average 3.4% in 2023 and 2.5% in 2026 but fall to 2% by the end of 2024.
- The G7 includes the US, UK, France, Germany, Italy, Canada, and Japan, excluding fast-growing economies like China and India.
- The UK moved ahead of Canada in the IMF forecast due to Canada's economic challenges.
- The IMF mentioned possible global economic risks, including the effects of tariffs on US imports and uncertainties surrounding AI technology.
