UK
Economic performance of the UK is expected to be modest in 2024. Real GDP growth sits at 0.3% for the year—a marginal improvement from 0.1% in 2023.
Inflation continues to decelerate and sits at 2.5% for 2024, which is a drastic drop from 7.4% in 2023.
The recovery in household demand and investment will remain sluggish because the effects of persistent inflation and high borrowing costs take time to abate.
Inflation is expected to remain low through the year, but supply chain disruptions associated with the security crisis in the Red Sea could escalate cost pressures for British consumers and businesses.
External shocks and global developments like geopolitical risks continue to have a strong influence on the outlook in the UK. But moderating price pressures, anticipated monetary easing, proposed tax cuts and minimum wage increases should help support momentum in the second half of 2024 and into 2025.
UK: Real GDP Growth and Inflation
Source: Euromonitor International Macro Model
Note: Annual rates in percentages. Revisions in percentage points.
