Britain's economy is expected to grow by only one percent in 2025, half of the previous forecast of 2 percent, said the country's finance minister on Wednesday.
Britain's public finance watchdog, the Office for Budget Responsibility (OBR), has revised down its 2025 growth forecasts in the latest publication, confirmed British Chancellor of the Exchequer Rachel Reeves in her Spring Statement in the House of Commons.
Around one-third of the lower growth this year reflects what appears to be structural weakness, and this is concentrated in productivity, said the OBR, adding that the remaining two-thirds is due to what appear to be cyclical, temporary factors including higher interest rate expectations, increases in gas prices and elevated uncertainty.
Highlighting the current significant uncertainty, the OBR said that if global trade disputes escalate to include 20 percentage point rises in tariffs between the USA and the rest of the world, this could reduce UK GDP by a peak of 1 percent.
Britain's annual CPI inflation is also projected to increase from 2.5 percent in 2024 to 3.2 percent in 2025, 0.6 percentage points higher than the October forecast, said the independent watchdog.
British 2025 GDP growth forecast cut in half to 1 pct
U.S. President Donald Trump said on Sunday that he has told U.S. negotiators not to rush into a deal with Iran because "time is on our side."
"The Blockade will remain in full force and effect until an agreement is reached, certified, and signed," he said in a post on Truth Social. He added: "Both sides must take their time and get it right."
The president reiterated that Iran will not be allowed to develop or procure a nuclear weapon.
He also said the "negotiations are proceeding in an orderly and constructive manner."
The post came a day after Trump announced that a peace agreement with Iran had been "largely negotiated," subject to finalization by the United States, Iran, and other relevant countries in the Middle East. He said the Strait of Hormuz would be opened as part of the agreement.
An Israeli government source said on Sunday that Trump has told Israeli Prime Minister Benjamin Netanyahu that he would not sign a final deal with Iran unless Tehran dismantled its nuclear program and removed all enriched uranium from its territory.
A senior U.S. official said Sunday that a deal with Iran is not expected to be signed on the day.
Crucial details are still under negotiation and it could take several days for the deal's approval, according to the official.
Iran's Supreme Leader Mojtaba Khamenei has approved the broad template of the agreement, but whether this will turn into a final agreement is still an open question, the official said.
Iranian President Masoud Pezeshkian said on Sunday that Iran is ready to reassure the world that it is not seeking nuclear weapons.
Iran is not seeking instability in the region, Pezeshkian said in an interview with the Iranian Students News Agency.
It is rather Tel Aviv that is driving regional instability, he said.
The Iranian president also emphasized that Iranian negotiators will never compromise on the country's "honor and dignity."
The New York Times reported Sunday that a key element of the proposed agreement was an apparent commitment by Tehran to give up its stockpile of highly enriched uranium.
In response, the Tasnim News Agency reported on Sunday that, contrary to claims by some Western media outlets that Iran had committed to removing nuclear materials from the country as part of the MoU, Iran had not made any such commitment.
Iran has not accepted any action on the nuclear issue at this stage of talks with the U.S., and nuclear negotiations have been postponed until after the potential end of the war and the implementation of some measures by the U.S. in this phase, the report said.
Tasnim also rejected the claim, attributed to Iran in the agreement, that it had committed to suspending nuclear activities for 20 years, which was reported by some regional media outlets on Sunday.
There are no details regarding Iranian nuclear measures in the potential MoU, Tasnim reported.
Trump says U.S. will not "rush into a deal" with Iran
