IMF Raises UK’s 2025 Growth Outlook but Warns of Major Risks to Deficit Targets

IMF Revises UK Economic Growth Outlook for 2025 Amid Persistent Challenges

The International Monetary Fund (IMF) has recently updated its economic growth forecast for the United Kingdom, projecting a modest increase in GDP growth to 1.4% in 2025. This upward revision signals cautious optimism despite ongoing headwinds such as elevated inflation rates, tighter monetary policies, and geopolitical uncertainties that continue to influence the UK’s economic trajectory. The IMF’s latest analysis highlights both emerging opportunities and significant vulnerabilities as the nation strives to balance recovery efforts with fiscal discipline.

Several key drivers underpin this revised outlook:

• Robust Consumer Demand: Post-pandemic rebound in household spending is fueling domestic consumption.
• Labour Market Strengthening: Employment figures have shown steady improvement, enhancing consumer confidence.
• Capital Investments: Increased funding in infrastructure development and technological…