KPMG Economics

UK GDP growth is expected to slow to 0.7% in 2026, down from 1.3% in 2025, as pressures from a fresh energy price shock push up inflation.

“Rising energy costs risk widening the UK Government’s deficit” says Dennis Tatarkov, Senior Economist at KPMG UK.

“The ECB holds rates as energy prices push inflation back into the spotlight” says Yael Selfin, Chief Economist at KPMG.

“The Bank of England signals a hawkish pivot, but rate cuts could still be on the cards later this year” says Yael Selfin, Chief Economist at KPMG UK.