UK Economy Projected to Grow Steadily Through 2027
The UK's economy is projected to grow at a steady pace in the next two years, according to the HM Treasury's Forecasts for the UK Economy. The forecast shows that the country's gross domestic product (GDP) growth will be 1.1% in 2026 and 1.2% in 2027.
The forecasts also predict that Consumer Price Index (CPI) inflation will ease from 3.4% in 2026 to 2.2% in 2027, while Retail Prices Index (RPI) inflation is expected to decrease from 4.2% in 2026 to 3.2% in 2027.
The Labour Force Survey (LFS) unemployment rate is forecast at 5.2% in 2026 and 5.1% in 2027, while the current account deficit is predicted to reach £95 billion (~$128.4 billion) in 2026 and £98.8 billion (~$133.5 billion) in 2027.
The Public Sector Net Borrowing (PSNB) for 2026-27 is forecast at £121.8 billion (~$164.6 billion), while the PSNB for 2027-28 is expected to reach £104.2 billion (~$140.8 billion).