Displaying items by tag: economic growth

The IMF has forecast that the UK will be the second-fastest-growing economy among the G7 nations this year - behind only the USA - despite ongoing global trade tensions. The IMF projects UK growth at a modest 1.3% in both 2025 and 2026, signaling resilience but also stagnation compared with past performance. Per capita growth, at less than 0.5%, remains the weakest in the G7. Inflation, however, continues to cloud the outlook: the UK is expected to record the highest price rises among advanced economies, driven by elevated energy and utility costs. The IMF anticipates inflation will ease to 2% by late next year, yet households still face financial strain. Rachel Reeves, attending the IMF’s Washington meetings, pledged to tackle what she called a ‘stuck’ economy, while the Bank of England urged caution on rate cuts. Amid geopolitical uncertainty and trade disruptions, Britain’s challenge is how to sustain growth without deepening inequality. Reeves has recently hinted that she may raise some taxes in the November budget: see

Experts warn that the Government cannot boost economic growth without addressing the mental health crisis affecting young people. A coalition of four mental health organisations has called for urgent action, rejecting claims that the crisis is exaggerated or over-medicalised. The statistics are alarming: one in five children and young people struggle with anxiety or depression, and the number of 16-34-year-olds who say mental ill health limits their ability to work has quadrupled in a decade. The economic impact is staggering, with an estimated £24 billion lost annually in workplace productivity and £1 trillion in lifetime lost earnings. Additionally, the cost of delays in accessing support stands at £295 million per year. Campaigners are urging the Government to increase investment in mental health services, improve early intervention, and investigate social media’s role in rising mental distress. The government has pledged £26 million for new crisis centres and plans to provide specialist mental health professionals in schools, but critics say the response remains inadequate.

The UK economy showed a growth of 0.6% over three months, marking a positive trend despite a flatline in June, attributed to the general election and ongoing strikes. Businesses across various industries delayed purchases pending the election's outcome, while strikes, including those by junior doctors, further contributed to the stagnation. The June GDP figure fell from the previous month’s 0.4% growth, yet overall the UK outperformed most G7 nations in the first half of 2024. The UK’s growth, particularly in scientific research, IT, and legal services, has been the highest among G7 nations. This consistent growth has left the threat of recession behind, a significant achievement after the economy contracted at the end of 2023. The Labour government has highlighted economic growth as essential to funding public sector investments without increasing national debt.

A climate summit in Nairobi has seen dozens of world leaders discuss climate solutions for Africa’s 1.3 billion people affected by climate change. Africa is the fastest-growing continent, and the most vulnerable to climate change. 85% of the worst-hit countries in the climate crisis are African. The Daily Nation newspaper proclaimed this gathering ‘Africa's moment.’ Kenya’s president Ruto came to power with climate change relief and accountability cornerstones of his foreign policy. Addressing the conference, he claimed, ‘Climate change is crimping Africa’s economic growth annually by 5 to 15%, despite Africa accounting for less than 4% of global emissions.’ The intention was for delegates to come to see resource-rich African states as crucial stakeholders in the green economy. Africa’s abundance of natural resources only receives 3% of global energy investments. The summit’s outcome sees nations promising financial solutions to climate-induced food insecurity, finding technical resolutions to food scarcity and storage, and making African markets attractive to investors.