Britain’s forecast of economic growth has declined by the IMF (IMF), warning that the outcome of Donald Trump’s trade war will be harder than the rest of Europe.
The World Economic Organization predicts that growth in 2025 will decrease by 0.5 percent compared to its previous forecast by 0.1 percent in 2026. This means that the British economy will grow by 1.1 percent next year and 1.4 percent next year.
The International Monetary Fund said rising government borrowing costs as a result of Trump’s tariffs as well as higher inflation and high energy costs of the sky are all to blame for Russian invasion of Ukraine.
The reduction threatens that Rachel Reeves, the Chancellor of the Fund, disappears by reducing the benefits of a vacuum cleaner in his spring statement, meaning that he will probably be forced to cut further or increase taxes when delivering his second budget in the fall.
The brutal decline than the 0.2 percent of Europe is facing, while Ms. Reeves is flying to Washington for spring meetings, which see the ministers of assets and trade heads from across the G7 and G20 nations discuss the global economy.
The Chancellor also holds his first meeting with his US counterpart Scott Bosnett because the British seeks to prevent Mr Trump’s affected costs from importing to the United States.
A Reeves, responding to the forecast before the meeting, said Britain would still be Europe’s fastest economy in the G7.
“The IMF has recognized that the government is making reforms that will lead to prolonged growth in the UK through our plan to change,” he said.
“The report also clearly shows that the world has changed, so I will be in Washington this week to defend British interests and do this case for free and fairly.”
In the increase of Ms. Reeves, the IMF updated British growth forecasts for 2028 and 2029 with 0.1 percent.
The IMF, delivering its latest global economic outlook, said several tariff waves created by the United States against its business partners “derives to uncertainty, which is once again a test of the global economy resistance.”
He warned: “Uncertainty, especially in the case of business policy, has increased to unprecedented levels.” And this has said that the uncertainty of Mr Trump’s policies is “against a cooling economic move”.
One of the reasons for the deterioration of the UK growth is the IMF decision to promote its inflation expectations dramatically, with a warning: “The United Kingdom and the United States stand in both directions and magnitude.” Higher inflation, especially high energy costs, reduces demand in the UK more than the rest of Europe.
According to the IMF, this inflation leads to poor family costs, which means lower economic growth.
At the same time, due to the increase in wages, consumption in Germany is stronger, which offsets some of the downtrends of tariffs throughout the euro area.
Another reason the United Kingdom is rising worse than the rest of Europe is increasing the return of gold, although US President’s policies push British borrowing costs to the highest level since 1998.
The best for Britain, which is the closer relations between Britain and the European Union, said that labor programs for growth so far have not provided the scale and speed of growth that a great business deal with Brussels could offer.
“The voters will judge the government whether this significant growth is achieved throughout the UK,” said Naomi Smith’s chief executive.
“In the context of such a challenging global economic situation, removing barriers to all industries should be the top priority of the British government when meeting with EU leaders next month.”
In contrast, Europe has benefited from Germany’s decision to loosen its financial laws to boost defense costs in an attempt to eliminate Europe from its dependence on the United States for security.
In general, British growth forecast for 2025 is still greater than the euro zone. In 1.1 % compared to 0.8 percent for 2025.
Prior to his first meeting with Mr Bosent, the International Fund’s International Fund’s Fund’s Fund Pressure Pressure Presses Pressure on the Chancellor, while British negotiators are trying to prevent tariffs with the United States. The UK is still subject to 10 % tax for all countries except China and 25 percent tariffs on steel and cars.
Vice President JD VANCE last week hoped a deal would be close and that the United States is “working very hard” to provide a “supreme” agreement with Britain.
In a speech before his visit, Ms. Reeves promised to “stand for England” and “get out of the moment”.
“This is alarming for families who are concerned about living and the jobs are concerned about what tariffs will mean to them,” he said.
“We need a global economy to provide stability and fairness for jobs for investment and trade, more trade, and global participation between nations with common interests and security for employees who want to continue with their lives.”
But it seems that his hopes for ensuring exemption are lean, because Kevin is a senior economic adviser to Mr Trump that 10 % is a “main base” that requires the “extraordinary deal” for the president.
Mr Trump himself has said that because of the income he claimed to be producing, he was not negotiating about the tariff regime.
British officials are now hoping for a more intense tax exemption from metals and cars.
Chitia Kumar, head of economic and environmental policy at the new Economic Foundation, urged the government to implement “fundamental reforms” of financial policies, according to the IMF warnings.
“The Treasury and the Bank of England must work together to reduce capital costs in the critical sectors, accelerate clean investment and create real economic resistance,” he said.
