Finance
UK OBR downgrades 2026 growth forecast to 1.4%
Published by Global Banking and Finance Review
Posted on December 8, 2025
Last updated: January 8, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 8, 2025
Last updated: January 8, 2026
LONDON (Reuters) -Britain's economy is forecast to grow by 1.4% next year, according to estimates by the country's budget watchdog published on its website on Wednesday ahead of finance minister Rachel Reeves' budget statement.
The new figure compared with a growth forecast for 2026 of 1.9% in the OBR's previous outlook published in March, when finance minister Rachel Reeves delivered her spring statement.
The OBR expects economic output to expand by 1.5% in 2027, 2028, 2029, and 2030.
Those forecasts compared with the OBR's previous expectations for growth of 1.8%, 1.7% and 1.8% in 2027, 2028, and 2029 respectively.
Growth in 2025 was upgraded to 1.5%, up from the previous forecast of 1.0%.
(Reporting by David Milliken and Andy Bruce, writing by Suban Abdulla)
Economic growth refers to the increase in the production of goods and services in an economy over time, often measured by the rise in GDP.
Monetary policy is the process by which a central bank manages the supply of money, often targeting inflation rates to ensure price stability and economic growth.
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