Britain is set to be the fastest-growing major economy in Europe over the next two years, according to the latest World Economic Outlook report from the International Monetary Fund (IMF).
The report shows that the UK economy began to recover in November, marking the first period of growth in three months. With inflation slowing and government bond yields starting to decline, the outlook for the UK is improving. The IMF has upgraded its forecast for UK gross domestic product (GDP) growth, predicting a 1.6% increase in 2025—slightly higher than its previous estimate of 1.5% in October.
This growth rate is expected to outperform other major European economies such as Germany, France, and Italy, highlighting the UK’s economic resilience in the face of global challenges.
Chancellor Rachel Reeves welcomed the positive forecast, noting that the UK is the only country in Europe—aside from the United States—to have had its growth outlook revised upwards this year. She reaffirmed her commitment to driving economic progress, saying, “I will go further and faster in my mission for growth through intelligent investment and relentless reform, and deliver on our promise to improve living standards across the UK.”
Reeves, who has faced criticism over her economic policies, also responded firmly to her detractors, saying she would not be discouraged by the criticism. Speaking on BBC’s Political Thinking with Nick Robinson podcast, she addressed concerns over rising borrowing costs, which have reached their highest level in years. She emphasized that the increase in borrowing costs was not unique to the UK, pointing out that other nations were facing similar economic pressures.
Reeves also expressed confidence in her ability to turn the economy around, stating, “I have what it takes to deliver for people in this country and the ideas needed to drive change.
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