Low growth and rising prices - it's looking gloomy for the UK
Published On Feb 6, 2025, 7:20 AM
The UK economy is forecasted to experience low growth and rising inflation, pushing it towards a period of stagflation. Interest rates were cut to 4.5% due to economic stagnation but inflation is expected to rise sharply to nearly 4% driven by increased energy prices from depleted storage facilities. The economy is expected to grow only 0.75% in 2025, with rising unemployment projected at just below 5%. This challenging economic landscape, exacerbated by uncertainties surrounding US trade policies and Brexit, indicates a lack of confidence among investors towards UK economic recovery.
Stock Forecasts
EWU
Negative
Given the low growth forecasts along with rising inflation, the outlook for the UK economy appears negative. This environment could affect consumer spending and corporate profits, leading to possible declines in UK-centric stocks.
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