UK Economic Growth Forecast Revised Downward to 1.0% for 2025

The UK’s economic growth forecast for 2025 has been revised downward to 1.0%, according to Finance Minister Rachel Reeves. The announcement, made on Wednesday, cites updated estimates from the Office for Budget Responsibility (OBR).

This new projection marks a sharp decline from the previously expected 2.0% growth, which was part of the OBR’s October outlook when Reeves presented her first comprehensive budget.

Updated Growth Projections

Looking ahead, the OBR now expects economic output to rise by:

• 1.9% in 2026 (compared to the previous 1.8% estimate)
• 1.75% annually for the rest of the decade (previously 1.5% for 2027)

These downward revisions indicate weaker-than-expected economic performance in the near term, raising concerns over the UK’s growth trajectory and potential policy responses.