According to recently updated projections, the UK’s GDP will rise by just 0.5% in 2024, a modest reduction from earlier predictions released in January, while global GDP is expected to grow by 3.2%.
However, as households recover from a protracted cost of living crisis, the UK GDP is predicted to grow by 1.5% in 2025, making it the third-best performer among the G7 countries.
The IMF predicts that inflation in the British economy will stay at roughly 2.5% for the remainder of this year before declining to the Bank of England’s target of 2% the following year.
When GDP is calculated per person, dividing output among all UK citizens, it becomes flat, growing by 1.1% in 2025 and nothing in 2024.
This measure accounts for the UK’s increasing population and historically high levels of legal immigration to provide a more accurate picture of living standards and the state of the economy for individual citizens.
