UK set to have weakest growth among G7 in 2024, IMF forecasts

Britain is set to have the slowest-growing economy among the Group of Seven nations next year – when the country is likely to choose a new government – according to forecasts published by the International Monetary Fund on Tuesday.

British gross domestic product will expand by an estimated 0.6 per cent in 2024, the IMF said, down from a previous forecast of 1.0 per cent and weaker than growth of 0.9 per cent and 1.3 per cent expected for Germany and France respectively.

The weak outlook reflected the need for the Bank of England to keep interest rates elevated to curb Britain’s still-high inflation rate and the after-effects of the surge in energy prices last year, the IMF said.

In 2023, Britain’s growth forecast of 0.5 per cent was the G7’s second weakest after a 0.5 per cent contraction projected for Germany.

Prime Minister Rishi Sunak is under pressure from within his Conservative Party to cut taxes and boost the economy before a national election expected next year. The opposition Labour Party has a big lead in opinion polls.