scale up vize
meyzen

UK economy expected to grow 0.7% in 2024, 1.5% in 2025: IMF

ENGLISH 09.07.2024 - 15:50, Güncelleme: 09.07.2024 - 15:50
 

UK economy expected to grow 0.7% in 2024, 1.5% in 2025: IMF

Inflation expected to rise to 2.5% by end of year but forecast returning to 2% in early 2025, says financial agency
The UK economy is expected to grow by 0.7% this year and 1.5% next year, the International Monetary Fund (IMF) said Monday. The financial agency said that Britain’s economy is approaching a soft landing, a situation where a central bank raises interest rates too much and too high, leading to an economic slowdown but avoiding a recession. It said economic growth in the country is recovering faster than expected after a mild technical recession in 2023 Inflation, meanwhile, has fallen rapidly to the near-term target from last year’s double-digit levels due to the reversal of the energy price shock and the demand impact of tight monetary policy, it added. Inflation is expected to temporarily increase from around 2% at the moment to 2.5% by the end of this year because of regulated energy price base effects, but it is forecast to return to 2% in early 2025, according to the IMF. "Longer-term growth prospects remain subdued due to weak labor productivity growth, population aging and somewhat higher than expected inactivity levels due to long-term illness, only partly offset by higher migration numbers," the IMF said in a statement after its Executive Board concluded the Article IV consultation with the UK. The agency noted that economic growth could be lower in the short term if the anticipated pick-up in consumption from the current weak levels does not materialize, or economic growth could be higher in the event of stronger-than-expected second-round effects from falling energy prices, which also represents a downside risk to inflation. Meanwhile, stronger wage pressures could cause higher persistence to services inflation, according to the IMF.
Inflation expected to rise to 2.5% by end of year but forecast returning to 2% in early 2025, says financial agency

The UK economy is expected to grow by 0.7% this year and 1.5% next year, the International Monetary Fund (IMF) said Monday.

The financial agency said that Britain’s economy is approaching a soft landing, a situation where a central bank raises interest rates too much and too high, leading to an economic slowdown but avoiding a recession.

It said economic growth in the country is recovering faster than expected after a mild technical recession in 2023

Inflation, meanwhile, has fallen rapidly to the near-term target from last year’s double-digit levels due to the reversal of the energy price shock and the demand impact of tight monetary policy, it added.

Inflation is expected to temporarily increase from around 2% at the moment to 2.5% by the end of this year because of regulated energy price base effects, but it is forecast to return to 2% in early 2025, according to the IMF.

"Longer-term growth prospects remain subdued due to weak labor productivity growth, population aging and somewhat higher than expected inactivity levels due to long-term illness, only partly offset by higher migration numbers," the IMF said in a statement after its Executive Board concluded the Article IV consultation with the UK.

The agency noted that economic growth could be lower in the short term if the anticipated pick-up in consumption from the current weak levels does not materialize, or economic growth could be higher in the event of stronger-than-expected second-round effects from falling energy prices, which also represents a downside risk to inflation.

Meanwhile, stronger wage pressures could cause higher persistence to services inflation, according to the IMF.

Habere ifade bırak !
Habere ait etiket tanımlanmamış.
Okuyucu Yorumları (0)

Yorumunuz başarıyla alındı, inceleme ardından en kısa sürede yayına alınacaktır.

Yorum yazarak Topluluk Kuralları’nı kabul etmiş bulunuyor ve turkishpress.co.uk sitesine yaptığınız yorumunuzla ilgili doğrudan veya dolaylı tüm sorumluluğu tek başınıza üstleniyorsunuz. Yazılan tüm yorumlardan site yönetimi hiçbir şekilde sorumlu tutulamaz.
Sitemizden en iyi şekilde faydalanabilmeniz için çerezler kullanılmaktadır, sitemizi kullanarak çerezleri kabul etmiş saylırsınız.