Thu, 06 Feb 2025

Thu, 06 Feb 2025 Low growth and rising prices - it's looking gloomy for the UK

The central bank may have cut rates but forecasts of low growth and rising inflation make a challenging domestic vista.

* UK's economic growth forecast at just 0.75% for this year, down from 1.4% in November
* Inflation expected to rise sharply into autumn, reaching close to 4% driven by energy price rises
* Unemployment set to rise to just below 5% over next two years
* Business investment held back due to uncertainty and government policies such as the Budget
* Productivity hit by pandemic, Brexit, and other factors leading to a long-term health check of economy
* Bank of England Governor Andrew Bailey monitoring US trade policy for potential impact on UK economy
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