United Kingdom: 2024 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for United Kingdom
Electronic Access:
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Summary:
The UK economy is approaching a soft landing, following a mild technical recession in 2023. A modest recovery is projected, with 0.7 percent growth in 2024, strengthening to 1.5 percent in 2025. Inflation has fallen rapidly from double digit levels last year in the context of easing energy prices and tight policies. Assuming wage and services inflation continue to moderate from their current elevated levels, inflation should return durably to target in the first half of 2025. The medium-term outlook is affected by significant public spending pressures, notably in healthcare, and the downshift in labor productivity growth post-GFC, exacerbated by recent adverse shocks (Brexit, COVID, energy price surge). Risks to the outlook are balanced. A general election is scheduled on July 4.
Series:
Country Report No. 2024/203
Subject:
Expenditure Financial sector policy and analysis Financial sector stability Inflation Labor Labor markets Labor productivity Labor supply Pension spending Pensions Prices Production Public debt
Frequency:
regular
English
Publication Date:
July 8, 2024
ISBN/ISSN:
9798400279379/1934-7685
Stock No:
1GBREA2024001
Format:
Paper
Pages:
118
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