The UK economy is expected to grow 1.1% in 2024 and accelerate in 2025, according to an average of City forecasts compiled by the UK government and issued on Wednesday.

UK gross domestic product is expected to grow 1.1% in 2024, according to an average of independent forecasts collated by the Treasury. It is unchanged from August.

The average of new forecasts received also calls for 1.1% growth in GDP. It is unchanged from the then-new forecasts received in August.

The consumer price inflation rate for 2024 is expected at 2.6%, according to an average of all independent forecasts, and up from 2.5% in August. The average of new forecasts also pencils in inflation of 2.6% for 2024, up from 2.5% of then-new forecasts received in August.

The unemployment rate at the end of the year is forecast to be at 4.4%, down from 4.5% in August.

Looking forward to 2025, GDP is expected to grow 1.3%, down from 1.4% in August.

The inflation rate for 2025 is anticipated at 2.2%, an expected slowdown from 2.6% anticipated for 2024.

The unemployment rate for the final quarter of 2025 is expected at 4.4%, down from a previous estimate of 4.5% in August.

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