2024-02-10 11:29:03
The Bank of England forecasts UK GDP growth at the end of 2024 at 0.25%, according to a communiqué following its February meeting. In 2025, the country’s economy may grow by 0.75%, in 2026 – by 1%, Day.Az reports with reference to Interfax.
The previous forecast called for zero change in GDP in 2024, growth of 0.25% in 2025 and 0.75% in 2026.
At the same time, the estimate of economic growth at the end of 2023 was worsened to 0.25% from 0.5%.
“Following the recent slowdown, GDP growth is expected to gradually accelerate over the forecast period,” it said. This is largely due to the easing of negative pressure that was caused by rising interest rates.
“Business surveys indicate improved prospects for business activity in the near future,” the document notes.
“The CPI fell to 4% in December (…), reflecting lower prices for fuel, basic goods and services. Although wage growth is still high, it has slowed across a number of indicators and is projected to , will continue to decline in the coming quarters,” the report said.
The Bank of England expects consumer price inflation (CPI) to be around 2% in the second quarter of 2024, up from 3.6% in January-March, before inflation picks up in the third and fourth quarters to be around 2.75%.
According to the Central Bank’s forecast, inflation will be at 2.3% in two years and 1.9% in three years.
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