UK to be slowest-growing G7 economy in 2024

Previous predictions have pointed to one percent growth in 2024, but this has been reduced to 0.6% amid pressure from higher interest rates. This is one percent slower than Canada, which is expected to record the strongest growth at 1.6%.

This is also considerably lower than the 1.2% growth predicted in the eurozone or the 1.5% expected in the US. Global GDP, meanwhile, is forecast to rise by three percent this year and 2.9% next year.  

The IMF’s director of research Pierre-Olivier Gourinchas said: “The global economy continues to recover from the pandemic, Russia’s invasion of Ukraine and the cost-of-living crisis. In retrospect, the resilience has been remarkable.  

“Despite war-disrupted energy and food markets and unprecedented monetary tightening to combat decades-high inflation, economic activity has slowed but not stalled. Even so, growth remains slow and uneven, with widening divergence.  

“The global economy is limping along, not sprinting.” 

The IMF also expects the UK will see CPI inflation hit 7.7% this year, with it set to slow more sharply to 3.7% next year.