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Macro - Country Economic Forecasts - United Kingdom

Publisher Oxford Economics
Published Aug 20, 2025
Length 8 Pages
SKU # OFE20418467

Description

We've raised our forecast for UK GDP growth this year by 0.2ppts to 1.3% due to a stronger-than-expected Q2. But we still project growth to slow to just 0.9% in 2026. We forecast sluggish growth next year given the strength of domestic headwinds, including fiscal policy being tightened significantly and the lagged impact of past interest rate rises continuing to emerge.

Table of Contents

8 Pages
UK: GDP forecast for 2025 raised after upside surprise in Q2
Forecast overview
Recent developments
Short-term outlook
Key drivers of our short-term forecast
Economic risk
Economic risk evaluation
Risk warnings
What to watch out for
Exposure to key global risks
Long-term prospects
Alternative long-run scenarios
Background
Economic development
Structure of the economy
Balance of payments and structure of trade
Policy
Politics

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