UK Economic Growth Forecast for 2026 Revised Down to 0.8% Amid Global Energy Disruptions and Rising Inflation
💰 UK economy growth forecast for 2026 is revised to 0.8% from 1.3%, due to global energy supply disruptions. Consumer spending is expected to grow only by 0.3%, down from 0.9%. Inflation is projected to exceed 4% by December, and unemployment may rise to 5.8% by end of 2026. The Bank of England will maintain interest rates at 3.75%. Energy prices could reduce output by £30bn, impacting sectors like steel and chemicals.
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