British Chancellor of the Exchequer Rachel Reeves presented a mixed fiscal outlook for the UK on Wednesday, as the Office for Budget Responsibility (OBR) revised key projections.
According to her speech, the OBR now expects the UK economy to grow by 1.9% in 2026, slowing slightly to 1.7% in 2028, and stabilizing at 1.8% in both 2027 and 2029. For this year, the OBR halved its growth forecast from 2% to 1%.
According to the data mentioned by Reeves, if 20% tariff hikes are imposed between the US and other countries, the UK's GDP could fall by up to 1%, and the expected surplus in 2029–30 could vanish.
