UK economy growth forecast raised for 2024 and 2025

The UK economy is projected to grow by 1.1% this year, an increase from the previous estimate of 0.8%. The Office for Budget Responsibility also raised its 2025 growth forecast to 2%, up from 1.9%. Chancellor Rachel Reeves announced these updates during the Budget presentation. She emphasized a shift towards long-term planning, with the OBR now providing a 10-year growth forecast. However, growth predictions for 2026 and beyond have been lowered. The OBR expects growth of 1.5% in 2027 and 2028, down from earlier forecasts of 1.8% and 1.7%. Inflation is expected to remain above the Bank of England's target until 2029.