United Kingdom: Growth risks tilt higher – Deutsche Bank
Deutsche Bank’s Sanjay Raja notes that the UK economy remained strong over spring, with UK GDP rising 0.4% q/q and annualised growth in the first half reaching 2%.
Deutsche Bank's Sanjay Raja highlights the UK economy's strong performance in spring, with GDP growing by 0.4% quarter-over-quarter and an annualized 2% over the first half of the year. Strong household spending, business investment, and stockpiling in Q2-26 contributed to this growth. However, Raja expects a slowdown as rising energy costs, high pump prices, and budget uncertainty weigh on growth later this year.
Despite the current momentum, he predicts a modest slowdown in the second half of the year, projecting growth of around 0.1% quarter-over-quarter. Yet, for the first time in recent times, modest upside risks are emerging.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
