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Analysis-Struggling economy awaits winner of British election

Analysis-Struggling economy awaits winner of British election
By William Schomberg LONDON (Reuters) - The winners of Britain's election on July 4 will have to tackle an economy that looks stuck in a rut of slow growth with high levels of debt limiting the next government's ability to spark a significant recov...

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The winners of Britain's upcoming election will face the challenge of reviving an economy struggling with slow growth and high debt. The aftermath of the global financial crisis, Brexit, the COVID pandemic, and rising energy and food prices have all taken a toll on the economy. Prime Minister Rishi Sunak has tried to reassure voters, pointing to falling inflation and strong GDP growth in the first quarter of 2024. However, the recovery is expected to be slow, with the IMF predicting growth of just 0.7% in 2024 and 1.5% in 2025. Both the Conservatives and the Labour Party have plans to boost the economy, but public debt levels are a major obstacle. The IMF has recommended higher taxes and reforms to stimulate investment and consumer spending. Additionally, the UK's labor market remains a challenge, with a high share of working-age people outside the workforce. The next government will need to address these issues to get the economy back on track.