The UK sees an increase in economic growth through a boost in spending

The UK sees an increase in economic growth through a boost in spending

Forecasters have predicted that the UK economy will see growth higher than initially expected.

The Office for Budget Responsibility (OBR) had forecasted that GDP in the UK will see a 1.1% increase in 2024, where forecasting from March 2024 stated a rise of 0.8% for the year.

Future estimations have the UK economy growing by 2% by next year, where previous forecasting stated 1.9%.

For the years following, the UK economy is forecasted to grow by 1.8% in 2026, and 1.5% in both 2027 and 2028.

Inflation rates

Inflation rates in September are the lowest recorded in the last 3 years, sitting at 1.7% with the Chancellor going on to state that the UK Government will keep the inflation rate target at 2% for the Bank of England.

OBR forecasts have predicted inflation rates at 2.6% for 2025, however, rates are set to dop over the years following, with 2028 inflation rates forecasted at 2.1%.

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