The UK economy is expected to grow 0.4% in 2024 and accelerate in 2025, according to an average of City forecasts compiled by the UK government and issued on Wednesday.

UK gross domestic product is expected grow 0.4% in 2024, according to an average of independent forecasts collated by the Treasury. It is unchanged from March.

The average of new forecasts received calls for 0.5% growth in GDP. It is up from 0.3% of then-new forecasts received in March.

The consumer price inflation rate for 2024 is expected at 2.1%, according to an average of all independent forecasts, and unchanged from March. However, the average of new forecasts pencils in inflation of 2.2% for 2024, up from 2.1% of then-new forecasts received in March.

The unemployment rate at the end of the year is forecast to be at 4.3%, down from 4.4% in March.

Looking forward to 2025, GDP is expected to grow 1.3%, unchanged from March.

The inflation rate for 2025 is anticipated at 2.1%, remaining at the same rate as that expected for 2024.

The unemployment rate for the final quarter of 2025 is expected at 4.3%, unchanged from the expected figure for the end of 2024.

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