Good morning 😁
IMF have upgraded our growth prospects a bit, but downgraded next year. Inflation and unemployment not looking good - expected to tick up from current 4.9% to 5.3%.
UK gross domestic product (GDP), a key economic measure of everything produced in the economy, is set to grow by 1.3% this year - up from a predicted 1% rise.
However, the latest world economic outlook cautioned that growth for next year is expected to slow to 1.2%, down from a previous forecast of 1.3%.The influential global economics body also indicated UK households will face a sharper rise in inflation than previously forecast, which will remain higher for longer.The most recent figures from the Office for National Statistics (ONS) showed that inflation increased to 3.1% in August and is expected to tick higher over the coming months, amid pressure from higher household energy bills.
The Bank of England has said it expects UK inflation to lift to "slightly above 4%" in the first four months of 2027, in part due to another increase in the household energy price cap in January.