LONDON (Reuters) – Britain is set to have the slowest-growing economy among the Group of Seven nations next year – when the country is likely to choose a new government – according to forecasts published by the International Monetary Fund on Tuesday.
British gross domestic product will expand by an estimated 0.6% in 2024, the IMF said, down from a previous forecast of 1.0% and weaker than growth of 0.9% and 1.3% expected for Germany and France respectively.
The weak outlook reflected the need for the Bank of England to keep interest rates elevated to curb Britain’s still-high inflation rate and the after-effects of the surge in energy prices last year, the IMF said.
In 2023, Britain’s growth forecast of 0.5% was the G7’s second weakest after a 0.5% contraction projected for Germany.
Prime Minister Rishi Sunak is under pressure from within his Conservative Party to cut taxes and boost the economy before a national election expected next year. The opposition Labour Party has a big lead in opinion polls.
(Writing by William Schomberg; editing by David Milliken)
