The UK economy is expected to grow more rapidly in 2024 than initially forecast, as declines in inflation and interest rates boost spending, according to new projections from the International Monetary Fund (IMF).

According to the IMF’s latest World Economic Outlook report, published on Tuesday, the battle against surging inflation has “largely been won,” with the global economy expected to remain broadly steady.

The report predicted 3.2 percent economic growth globally this year, following a prolonged period of weakness. It attributed global growth challenges to ageing populations, weak investment, and obstacles that prevent capital and labour from moving to more productive companies.
The IMF reduced its estimate for global economic growth for next year from 3.3 to 3.2 percent.

In its projections for the UK, the IMF said that Britain’s GDP will grow by 1.1 percent this year. This is a significant upgrade since the fund’s last prediction of 0.7 percent growth. The forecast follows two months of zero economic growth, with the UK economy flatlining in both July and June.


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