UK Economic Outlook
Economic resilience in 2026 , despite fiscal tightening looming in the Autumn budget
Despite global uncertainties and restrictive monetary conditions, the UK economy is poised for robust growth through late 2025. While the upcoming Autumn Budget may introduce modest tax hikes and a tighter fiscal stance, concerns about the UK’s fiscal profile are likely overstated.
Looking ahead, inflation is expected to ease significantly in 2026, moving closer to the Bank of England’s 2% target. This shift will create new opportunities as the Bank gains scope to normalize interest rates and support economic growth into 2027.
Learn more about the UK’s evolving economic landscape, download Morningstar’s UK Economic Outlook report here.
