UK economic growth to stay subdued in 2026: report
Summary
The UK economy is forecasted to have subdued growth in 2026 with GDP expected to expand by only 1.2 percent amid ongoing cost pressures, slower trade growth, and rising unemployment.
Key Points
- UK GDP is projected to grow 1.2 percent in 2026, down from 1.4 percent in 2025.
- Business investment is expected to fall significantly to 0.9 percent growth due to ongoing cost pressures and lack of growth measures.
- UK trade growth will slow down amid global uncertainty, with exports growing slower at 1.8 percent and imports at 1.4 percent in 2026.
- Unemployment is expected to rise to 5.1 percent while wage growth cools, easing inflationary pressures.
