Finance
UK economy forecast to grow 2.0% in 2025, finance minister says
Published by Jessica Weisman-Pitts
Posted on October 30, 2024
1 min readLast updated: January 29, 2026
Global Banking & Finance Review®
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Published by Jessica Weisman-Pitts
Posted on October 30, 2024
1 min readLast updated: January 29, 2026
LONDON (Reuters) – Britain’s economy is forecast to grow by 2.0% next year, finance minister Rachel Reeves said on Wednesday, citing the latest projections from the Office for Budget Responsibility.
LONDON (Reuters) – Britain’s economy is forecast to grow by 2.0% next year, finance minister Rachel Reeves said on Wednesday, citing the latest projections from the Office for Budget Responsibility.
The new figure compared with a growth forecast for 2025 of 1.9% in the OBR’s previous outlook published in March, when the former Conservative government delivered its last budget.
The OBR expects economic output to expand by 1.8% in 2026 and by 1.5% in 2027, Reeves said as she gave her first budget statement speech to parliament.
Those forecasts compared with the OBR’s previous expectations for growth of 2.0% and 1.8% in 2026 and 2027.
Growth in 2024 was upgraded to 1.1%, up from the previous forecast of 0.8% for this year.
Reeves said she would publish a new “Charter for Budget Responsibility” that will provide a detailed assessment of the growth impacts of Labour’s policies over the next decade.
(Reporting by David Milliken and Sachin Ravikumar; writing by Suban Abdulla, editing by Christina Fincher and Hugh Lawson)
Economic growth refers to an increase in the production of goods and services in an economy over a period of time, often measured by the rise in GDP.
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