Economy

The UK is set to have the second-fastest growing economy among the G7 nations next year, but will be hampered by the highest inflation, according to a mixed forecast from the International Monetary Fund (IMF). In an upbeat assessment for Chancellor Rachel Reeves, the IMF projects modest UK growth of

Scotland's labour market is showing signs of increasing pressure, with new official figures revealing a fall in the employment rate alongside rises in both unemployment and economic inactivity. According to data for June to August 2025, Scotland's employment rate for people aged 16-64 fell by 0.6 pe

The International Monetary Fund and the Bank of England have become the latest major financial institutions to warn that the global stock market is at risk of a significant correction should investor enthusiasm for artificial intelligence cool. Speaking ahead of the IMF's annual meetings, chief Kris

Scottish businesses have become markedly more pessimistic about the economic outlook, according to research from the University of Strathclyde’s Fraser of Allander Institute. At the same time, the Institute warns that ongoing problems with the reliability of labour market statistics are obscur

The UK construction sector saw a slight uptick in activity in September, but it remains firmly in contractionary territory.

The UK economy may be on a more precarious footing than previously understood after a major revision to official data cast doubt on the scale of household savings. Analysts are now warning that hopes for a consumer-spending boom, fuelled by a "massive wodge of cash" saved during the pandemic, are li

The UK economy grew by 0.3% in the second quarter of the year, a slowdown from the 0.7% growth recorded in the first three months. The official figures, confirmed by the Office for National Statistics (ONS), come as firms reportedly front-loaded spending earlier in the year to pre-empt potentia

Scotland’s onshore GDP fell by 0.3% in July 2025, a reversal from the revised 0.7% growth seen in June, according to the latest figures from the Chief Statistician. Despite the monthly contraction, the broader picture shows growth of 0.5% for the three-month period ending in July when compared

According to RSM UK’s latest Economic Outlook for Q3 2025, the UK was the best performing G7 economy in the first half of 2025, despite low consumer confidence and stagnant business investment. However, growth looks more challenging moving forward, with inflation set to hit 4% and wage growth

The UK government is faced with a future of difficult tax choices, with an increased likelihood of tax rises to combat mounting public spending pressures and sluggish economic growth, according to KPMG.

UK government borrowing soared to £83.8 billion in the first five months of the fiscal year, the highest for this period in the last five years.

The UK government has announced £150 billion in new US investment in the UK, timed to coincide with President Donald Trump's state visit.

The Bank of England’s Monetary Policy Committee (MPC) has voted 7-2 to hold interest rates at 4%, citing persistent inflationary pressures. In a dual decision, the committee also announced it would slow the pace of its quantitative tightening (QT) programme in response to febrile market condit

The UK's inflation rate held steady at 3.8% in August, reinforcing expectations that the Bank of England will keep interest rates on hold this week. Figures from the Office for National Statistics (ONS) showed the consumer prices index remained at the same level as July, matching economists' forecas

The UK's GDP flatlined in July, recording zero economic growth. Data from the Office for National Statistics (ONS) confirmed the stagnation, a slowdown from the 0.4% expansion seen in June. The figures, which were in line with economists’ expectations, showed that a slump in manufacturing canc