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flag UK growth forecast at 1.2% for 2026, slowed by weak investment and rising unemployment.

flag The UK economy is projected to grow 1.2% in 2026, slightly slower than 2025’s 1.4% forecast, according to the British Chambers of Commerce, citing weak business investment, slowing trade, and rising unemployment. flag While the CBI upgraded its 2026 growth forecast to 1.3% due to a recent budget’s fiscal measures, it warned the plan prioritized deficit reduction over long-term growth, with inflation expected to remain above target and interest rates only modestly cut. flag Persistent cost pressures, low productivity, and subdued investment are expected to limit economic momentum.

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