The International Monetary Fund has said on Monday that the UK’s economy is set to grow by 1.6% this year which is up by 0.1% from predictions in October.
The IMF’s chief economist, Pierre-Olivier Gourinchas said this reflects “continued pick-up in real incomes and consumption,” which comes as the Bank of England is expected to cut interest rates.
“We see some positives coming from increased public spending,” Gourinchas said.
“Of course, some of the Budget is financed by increased taxes – national insurance contributions have been increased – that could weigh down, but the net effect in our assessment is still positive for growth for the UK economy in 2025.”
This will provide a boost for the Chancellor Rachel Reeves who has to date suffered a tumultuous start in No 11.
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