KPMG Upgrades UK Economic Growth Forecast to 0.5% for 2024, Indicating Promising Outlook for Post-Election Government

In a recent report, KPMG, one of the world’s leading professional services firms, has upgraded its forecast for the UK economy, predicting a growth rate of 0.5% for 2024. This is a significant increase from their previous forecast of 0.2%, and it suggests stable conditions for the incoming government post-election.

The report, titled “UK Economic Outlook: Spring 2024”, highlights the resilience of the UK economy despite the uncertainties surrounding Brexit and the global economic slowdown. KPMG’s revised forecast is based on the assumption that the UK will leave the European Union with a deal, and that the global economy will gradually recover from its current slowdown.

According to Yael Selfin, Chief Economist at KPMG UK, the upgraded forecast is a result of the UK’s strong fundamentals, including a skilled workforce, a stable political environment, and a flexible economy. She also noted that the UK’s economic growth has been driven by domestic demand, which has remained robust despite the uncertainties surrounding Brexit.

The report also predicts that the UK’s GDP growth will pick up to 1.4% in 2020, and then gradually increase to 1.6% in 2021 and 1.8% in 2022. This is a positive sign for the UK economy, as it indicates a steady and sustainable growth trajectory in the coming years.

The upgraded forecast is good news for the incoming government, as it suggests that the UK economy will continue to perform well in the post-election period. This will provide a solid foundation for the new government to build upon and implement its policies to further boost economic growth.

KPMG’s report also highlights the potential for the UK to attract foreign investment, especially in the technology and innovation sectors. The UK’s strong research and development capabilities, coupled with its skilled workforce, make it an attractive destination for foreign investors looking to tap into the country’s thriving tech industry.

The report also suggests that the UK’s services sector, which accounts for around 80% of the country’s GDP, will continue to be a key driver of economic growth. This is due to the UK’s strong reputation for providing high-quality services, which has made it a global leader in sectors such as finance, education, and healthcare.

In addition, KPMG’s report predicts that the UK’s unemployment rate will remain low at around 3.8% in 2020, which is below the EU average. This is a testament to the strength of the UK’s labor market and its ability to create jobs, even in the face of economic uncertainties.

The upgraded forecast by KPMG is in line with other recent reports that have also predicted a positive outlook for the UK economy. The Bank of England, for instance, has also revised its forecast for the UK’s GDP growth, predicting a rate of 1.5% in 2020.

The upgraded forecast by KPMG is a clear indication that the UK economy is on a stable path, and that the country is well-positioned to weather any potential challenges in the future. It also sends a positive message to investors and businesses, both domestic and international, that the UK remains a strong and attractive market for investment.

In conclusion, KPMG’s upgraded forecast for the UK economy is a welcome development that provides a much-needed boost of confidence in the country’s economic outlook. It is a testament to the UK’s strong fundamentals and its ability to navigate through challenging times. With a stable and growing economy, the incoming government will have a solid foundation to build upon and drive the country towards a prosperous future.