UK economists doubt Labour party's ability to boost growth

UK economists are predicting slow expansion from the past to continue amid growing skepticism about Keir Starmer's newly-elected government to boost growth, a survey cited by Bloomberg showed.

Economists expect a slightly faster growth of 0.8 per cent in 2024 and 1.3 per cent in 2025. These projections are up 0.1 percentage points compared to the previous survey.

The forecasters also raise doubts over Labour party's plans for UK's long-term growth, while anticipating a looser fiscal policy under the new finance minister Rachel Reeves.

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Reeves had earlier mentioned how it's a long-way to go for the economy to revive. 'We've just got started, there's a lot more to do, but I'm determined to fulfil that number one mission of this incoming Labour government to grow our economy and create good jobs right across the UK,' she said.

Reeves also seemed optimistic about the blitz of policy reforms aimed at boosting the economy. 'Well I hope that the plans that I've set in motion this week - the reform of the planning system, establishing the National Wealth Fund to co-invest with businesses, leveraging in billions of pounds of private sector investment - is what's needed to grow our economy and create good jobs right across the UK. There's a huge amount of work to be done. I've been in post for a week now, we've done more to reform the planning system in the first 72 hours I was in this role than the previous government did in 14 years.'

However, economists doubt the efficiency of reforms to propel UK's growth among G7 nations, as eyed by the new government. The coming months will be crucial to determine UK's growth trajectory.