The UK looks set to claim the crown as Europe’s fastest-growing major economy over the next two years, according to a new report from the International Monetary Fund (IMF). It’s a welcome boost for Chancellor Rachel Reeves, who’s been under fire for her handling of Britain’s financial woes.
Growth Forecast
After months of economic jitters, the IMF’s World Economic Outlook suggests the UK will expand by 1.6% in 2025, beating out Germany, France and Italy. This follows a recent uptick in UK GDP— the first in three months—coupled with slowing inflation and improving gilt yields. It’s also worth noting that the UK is the only country other than the US to see its 2025 forecast upgraded from last October’s predictions.
The Chancellor’s Reaction
Rachel Reeves toasted the news, highlighting how Britain is “the only country to have its growth forecast upgraded for this year, other than the US.” She pledged to go “further and faster” in fuelling growth, emphasising “intelligent investment” and “relentless reform” to boost living standards across the UK.
Handling Criticism
Reeves has faced scrutiny over her management of the economy, particularly as borrowing costs hit a multi-year high. In a BBC interview, she countered that rising costs aren’t “a British phenomenon” and that other nations are facing similar challenges. Reeves argued she has both the determination and the ideas to turn the UK’s fortunes around, telling critics she won’t let them “get me down.”
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