Finance
UK's 2025 growth forecast halved to 1.0%, OBR says
Published by Global Banking & Finance Review®
Posted on March 26, 2025
1 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 26, 2025
1 min readLast updated: January 24, 2026
The UK's 2025 growth forecast is halved to 1.0% by the OBR, with expectations of 1.9% growth in 2026, influenced by monetary policy and energy prices.
LONDON (Reuters) - Britain's economy is forecast to grow by 1.0% this year, the Office for Budget Responsibility said on Wednesday, halving its estimate made in October.
The OBR expects economic output to expand by 1.9% in 2026 and averaging 1.8% a year over the rest of the forecast.
That compared with the OBR's previous expectations for growth of 1.8% in 2026 and 1.5% in 2027.
"The projected acceleration in 2026 reflects monetary policy loosening, falls in energy prices, and a gradual easing of uncertainty resulting in spare capacity in the economy being used up," the OBR said in forecasts published as finance minister Rachel Reeves delivered a half-yearly budget update.
(Reporting by David Milliken and Sachin Ravikumar; writing by Suban Abdulla; Editing by Hugh Lawson)
The main topic is the UK's economic growth forecast for 2025 being halved to 1.0% by the OBR.
The forecast was adjusted due to monetary policy changes, energy price falls, and reduced economic uncertainty.
Finance Minister Rachel Reeves delivered the half-yearly budget update.
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