Britain is on track to be the fastest-growing major European economy over the next two years, the International Monetary Fund’s latest World Economic Outlook report suggests.
Growth returned to the UK economy for the first time in three months in November, while inflation has slowed and gilt yields started to fall.
The IMF expects British gross domestic product (GDP) to grow by 1.6 per cent in 2025, up on the 1.5 per cent it predicted last October, outstripping fellow European economies in Germany, France and Italy.
Toasting the news, chancellor Rachel Reeves pointed out that the UK is the only country to have its growth forecast upgraded for this year, other than the US.
She said: “I will go further and faster in my mission for growth through intelligent investment and relentless reform, and deliver on our promise to improve living standards in every part of the UK through the plan for change.”
After facing pressure over her handling of the economy, Reeves hit back at her critics on Friday (17/1), saying she will not let them “get me down”.
Speaking to the BBC’s Political Thinking with Nick Robinson podcast, after borrowing costs rose to the highest level for several years, she argued the rise was “not a British phenomenon” and that other countries had also seen a similar increase.
She also argued she has “what it takes to deliver for people in this country” and the ideas to “turn things around”.
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