UK economy downgraded for 2024 but will still be ahead of France and Germany for next two years, says report
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UK economic growth has been downgraded for last year - but will stay ahead of EU rivals for the next two years, figures show. Experts at the International Monetary Fund say that the domestic economy grew by just 0.9 per cent in 2024 having previously forecast 1.1 per cent.
![[Chancellor Rachel Reeves speaking at a press conference.]](https://www.thesun.co.uk/wp-content/uploads/2025/01/2024-maidstone-england-chancellor-exchequer-956233074.jpg?strip=all&w=960)
The growth reading was predicted before official figures show UK GDP was lower-than-expected at 0.1 per cent in November. The warning from the IMF comes amid market turmoil in recent days where borrowing costs jumped and the pound slumped. But in welcome news for the Chancellor Rachel Reeves the IMF has upgraded economic growth for this year - edging up slightly to 1.6 per cent.
The organisation has predicted a figure of just 1.5 per cent in October last year. Overall, the IMF report says global growth will be 3.3 per cent this year and next - which included a 0.1 per cent upgrade this year. The UK though will stay ahead of European rivals Germany, France and Italy in terms of growth.
Chancellor Rachel Reeves said: “The UK is forecast to be the fastest growing major European economy over the next two years and the only G7 economy, apart from the US, to have its growth forecast upgraded for this year. “I will go further and faster in my mission for growth through intelligent investment and relentless reform, and deliver on our promise to improve living standards in every part of the UK through the plan for change.”.
