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UK growth slows to 0.9% in 2026 amid tax hikes, rate stability, and weakening consumer confidence.
Britain’s economic growth is projected to slow to 0.9% in 2026 from 1.4% in 2025, driven by ongoing tax increases, spending constraints, and global uncertainty.
Business investment is expected to contract slightly by 0.2%, reversing prior growth.
The Bank of England is forecast to hold its interest rate at 3.75% with one cut expected in April as inflation reaches the 2% target.
While lower rates may ease financial pressure, rising unemployment and slowing pay growth are expected to dampen consumer confidence.
Modest spending is anticipated due to reduced saving by higher earners, despite a widening confidence gap between income groups.
El crecimiento del Reino Unido se desacelera al 0,9% en 2026 en medio de aumentos de impuestos, estabilidad de las tasas y debilidad de la confianza del consumidor.