A new forecast says the UK is set to become the second-fastest-growing economy in the G7 this year. These are the latest projections of the International Monetary Fund (IMF) in their biannual overview of the global economy.
The IMF is a highly respected forecaster around the world. It has 190 members and seeks to maintain global economic stability. Its predictions are not cast in stone, and can be impacted by everything from global events to weather patterns. They will, nevertheless, be welcomed by the British government as it seeks further investment from overseas. The Chancellor of the Exchequer, Rachel Reeves, is keen to reassure investors that the UK is financially stable and an attractive option for business.
Anyone interested in investment planning in Cheshire or the wider economy will be interested in these developments. At a time of turbulent trade and geopolitical headwinds, the IMF added that the UK was demonstrating greater resilience than many comparable economies. The response to US tariffs on transatlantic exports has thus far been relatively muted. Amongst the G7 members, it says the British economy is set to be outperformed by only the US. Growth is estimated to hit 1.3% this year, and again in 2026.
Whilst the IMF also warned of accompanying inflationary pressures in the UK, the Governor of the Bank of England, Andrew Bailey, said that he believed these were easing, with lower unemployment figures and wage growth. On current projections, prices are forecast to go up by 3.4% in 2025 and by 2.5% the following year, before stabilising.
