IMF Cuts UK's 2025 Growth Forecast Amid Global Economic Pressures

The IMF has reduced Britain's economic growth forecast for 2025 to 1.1% from 1.6% amid concerns over global trade tariffs and inflation. British inflation is projected to rise to 3.1% this year. Finance Minister Rachel Reeves plans to discuss these issues with U.S. officials in Washington.

The International Monetary Fund (IMF) announced a sharp reduction in its forecast for Britain's economic growth in 2025, attributing the revision to global pressures including U.S. trade tariffs. British economy's growth rate is now projected at 1.1%, down from the previously estimated 1.6%.

The IMF noted that British inflation is expected to reach 3.1% this year, a significant increase from the January estimate of 2.4%. Higher inflation rates are seen as a direct result of recent hikes in energy and water bills, as well as social security contributions and the minimum wage.

Finance Minister Rachel Reeves emphasized the IMF's recognition of the UK's relatively strong economic growth compared to major European economies. In Washington, she plans to advocate for a trade agreement that could mitigate the impact of U.S. tariffs on the UK.

(With inputs from agencies.)