United Kingdom: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for United Kingdom

Author: International Monetary Fund. European Dept. and International Monetary Fund. Strategy, Policy, & Review Department

Great Britain: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for United Kingdom

Volume/Issue: Volume 2025 Issue 204

Publication date: July 2025

ISBN: 9798229018678

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Summary

The new government has launched bold reforms since taking office in July 2024. The efforts go in the right direction, but delivering on this agenda is challenging in a highly volatile global environment and with limited fiscal space. Economic activity is projected to gradually recover, driven by private consumption. The disinflation process is expected to continue despite a temporary uptick in inflation.