Coface’s latest Economic Outlook forecasts that the UK economy will grow by 1% in both 2025 and 2026. While this places the UK in line with other advanced economies in 2025, it is expected to fall behind in 2026 (the EU is projected to grow by 1.5%). Inflationary pressures remain a key concern. Coface expects UK inflation to peak at 3.5% in Q3 2025, before gradually easing but remaining above the Bank of England’s 2% target throughout 2026. Furthermore, after signs of stabilisation, Coface is also warning that UK corporate insolvencies are once again on the rise and now expects a 3% increase in 2025. Three key UK sectors (automotive, chemicals, and metals) have been reassessed from High Risk to Very High Risk. To read Coface’s news release, go to https://www.coface.uk/news-economy-and-insights/coface-risk-review-july-2025-uk-outlook-from-our-economist-jonathan-steenberg.