KPMG – UK Economic Outlook, Sep 2025
Summary
The main theme of the report is the economic forecast for the United Kingdom for 2025 and the following years.
Key findings include: GDP growth is expected to slow to 1.2% in 2025 and 1.1% in 2026. Inflation is forecasted at 4% in 2025 with a gradual decrease to 2% in 2026. A potential reduction in the base interest rate to 3.75% by the end of 2025 is anticipated. Weak productivity and a decline in intellectual property investments are expected. Trade relations with the US may remain weak due to tariffs.
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