London – The International Monetary Fund (IMF) has raised its growth projections for the UK in 2024, a positive indicator for the newly elected Labour government. The global financial institution now expects the UK economy to expand by 0.7% this year, up from its previous estimate of 0.5%.
The updated forecast comes as a welcome relief after two years of economic stagnation and a brief recession at the end of 2023. Recent data showing GDP growth of 0.4% in May and expected economic boosts from events such as the Euro 2024 football championship and Taylor Swift concerts have contributed to the optimistic outlook.
Major financial institutions, including Goldman Sachs and Deutsche Bank, also expressed confidence in the UK’s economic trajectory. These firms raised their growth forecasts, citing the government’s pro-growth policies and strong performance in sectors such as professional services and construction.
While the IMF maintained its 2025 growth forecast for the UK at 1.5%, it issued a cautious note on global economic conditions. The organisation warned of potential inflationary pressures and the possibility of higher interest rates persisting for an extended period.
Despite these challenges, the IMF’s upward revision to the UK’s growth forecast is seen as a significant vote of confidence in the country’s economic prospects.