UK's 2026 economic growth forecast downgraded to 1.1%

2026-03-03 21:32:33

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Investing.com - UK Chancellor of the Exchequer Rachel Reeves said on Tuesday that the UK economy is expected to grow by 1.1% this year, marking a downward revision from the Office for Budget Responsibility’s previous forecast.

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The revised forecast is lower than the 1.4% growth rate predicted in the Office for Budget Responsibility’s November outlook, when Reeves announced her second annual budget.

In her mid-year fiscal update speech, Reeves stated that the budget watchdog expects economic output to grow by 1.6% in 2027 and 2028, and by 1.5% in 2029 and 2030.

Reeves pointed out that the average growth rate over the entire forecast period remains largely unchanged, with the Office for Budget Responsibility adjusting the GDP growth trajectory to be slightly slower in 2026 but faster in 2027 and 2028.

The Office for Budget Responsibility previously forecasted the economy would grow by 1.3% in 2026, before revising it down to 1.1%.

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