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UK GDP expected to grow 1.4% in 2026: Goldman Sachs Research

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UK GDP expected to grow 1.4% in 2026: Goldman Sachs Research



Goldman Sachs Research expects ‘another mixed year’ for the UK economy, which is expected to grow at 1.4 per cent this year—up from around 1 per cent in 2025, according to a report by the company’s senior UK economist James Moberly and chief European economist Jari Stehn.

They predict that the labour market will keep weakening, but also anticipate a boost to the economy from a significant cooling of inflation and further rate cuts from the Bank of England (BoE).

Goldman Sachs Research expects ‘another mixed year’ for the UK economy, which is expected to grow at 1.4 per cent in 2026—up from around 1 per cent in 2025.
It expects the unemployment rate to rise to 5.3 per cent by March, and then stabilising.
Consumption is expected to grow at 1.3 per cent in 2026 versus 0.7 per cent in 2025.
The fiscal position looks less vulnerable than some other European nations.

The UK labour market weakened significantly in 2025 as slow economic growth and the increase in national insurance contributions weighed on employment. A recent rise in layoffs points to ‘further labour market softening ahead’, according to Moberly and Stehn.

Goldman Sachs Research expects the unemployment rate to rise to 5.3 per cent by March. But as growth picks up towards potential, it sees the unemployment rate stabilising for the remainder of this year, the report says.

Given rising slack in the job market, lower headline inflation, and a smaller increase in the national living wage, the company’s economists expect wage growth to normalise this year. Private sector regular pay growth slowed to 3.8 per cent from around 6 per cent over the last 12 months, and the team forecasts further cooling to 3.1 per cent by the end of 2026.

Consumer spending in the UK is low, and the household savings rate is elevated. “Real disposable income growth is likely to remain weak in coming quarters given wage growth moderation, elevated mortgage rates, and a larger fiscal drag on household incomes,” Moberly and Stehn write.

The team’s models suggest that the savings rate will likely decline this year as interest rates fall and consumption catches up with recent increases in real inflation-adjusted incomes.

Consumption is expected to grow at 1.3 per cent in 2026 versus 0.7 per cent last year.

The team anticipates further progress on inflation in the coming months given unwinding base effects.  Goldman Sachs Research projects headline inflation to decelerate to 2.1 per cent in the second quarter this year.

The fiscal trajectory, political risk, and efforts to boost economic growth are likely to be key areas of focus this year, according to the company.

“Our analysis suggests that the UK’s fiscal position looks less vulnerable than some other European countries, notably France,” Moberly and Stehn add.

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Cambodia & Canada discuss strengthening economic ties

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Cambodia & Canada discuss strengthening economic ties



Cambodian Prime Minister Hun Manet and Canadian ambassador to the country Christian DesRoches recently discussed strengthening economic ties, while advancing preparations for the 20th Francophonie Summit scheduled for November this year.

In the course of a meeting with Hun Manet at the Peace Palace in Phnom Penh, Ambassador DesRoches expressed appreciation for the long-standing diplomatic ties, highlighting the steady progress in bilateral relations, particularly in trade and Canadian investment in Cambodia.

The envoy underscored his country’s commitment to supporting Cambodia’s successful hosting of the 20th Francophonie Summit. He stressed Canada’s commitment to further strengthening and expanding cooperation between the two countries, especially in trade and economic relations, while also reaffirming support for Cambodia’s development priorities.

Cambodian PM Hun Manet and Canadian ambassador to the country Christian DesRoches recently discussed strengthening economic ties, while advancing preparations for the 20th Francophonie Summit scheduled for November.
The envoy stressed Canada’s commitment to further strengthening and expanding bilateral cooperation, especially in trade and economic ties, and reaffirmed support for development priorities.

He thanked Cambodia for its support in promoting Canada’s economic cooperation with the Association of Southeast Asian Nations (ASEAN) and advancing negotiations for the ASEAN-Canada Free Trade Agreement (ACFTA), expected to be concluded and signed soon, according to Cambodian media reports.

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US CBP to soon launch electronic system for importers to claim refunds

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US CBP to soon launch electronic system for importers to claim refunds



US Customs and Border Protection (CBP) recently announced that it will launch an electronic system on April 20, enabling importers to submit and process tariff refund claims more efficiently.

CBP is developing the Consolidated Administration and Processing of Entries (CAPE) functionality within the Automated Commercial Environment (ACE) to streamline the submission and processing of valid refund requests for duties imposed under the International Emergency Economic Powers Act (IEEPA), as authorised by court order or applicable law.

US Customs and Border Protection will launch on April 20 an electronic system that importers can use to claim tariff refunds authorised by court order or applicable law.
Phase 1 will be limited to certain unliquidated entries and certain entries within 80 days of liquidation.
Refunds will be issued within 60-90 days of the Consolidated Administration and Processing of Entries declaration getting accepted.

Phase 1 will be limited to certain unliquidated entries and certain entries within 80 days of liquidation.

CAPE is designed to consolidate refunds of IEEPA duties including interest rather than processing refunds on an entry-by-entry basis.

CBP plans to implement CAPE through a phased development approach, adding more functionality in subsequent phases for more complicated scenarios, it said in a release.

Valid IEEPA refunds will generally be issued within 60-90 days following acceptance of the CAPE declaration, unless a compliance concern requires further CBP review.

However, certain scenarios, such as entries that are extended, suspended or under review, and warehouse entries, will maintain their liquidation status with validated refunds issued at liquidation.

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US’ Gap & FIT launch programme to mentor fashion students

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US’ Gap & FIT launch programme to mentor fashion students



At the FIT Annual Gala on April 14, Gap Inc. President & CEO Richard Dickson (NYSE: GAP) announced the launch of The Doris Fisher Creators Program, a new mentorship initiative developed in partnership with Gap Inc. and the Fashion Institute of Technology (FIT).

Named in honor of Gap Inc. co-founder Doris Fisher, the program reflects her legacy of creativity, curiosity, and belief in people. It also builds on Gap Inc.’s commitment to helping bridge the opportunity gap by creating stronger connections between education and careers in the fashion industry.

Gap Inc., led by Richard Dickson, has launched The Doris Fisher Creators Program with the Fashion Institute of Technology to mentor students in fashion careers.
Starting Fall 2026, the programme will offer structured mentorship, industry exposure, and networking for select students, honouring Doris Fisher and strengthening pathways from education to careers.

“Gap Inc. is a house of iconic American brands guided by our purpose — to bridge gaps to create a better world. That includes bridging the opportunity gap. FIT embodies that same spirit, bringing education and industry together to unlock talent and expand what’s possible. We’re committed to opening doors, investing in emerging creatives, and building meaningful pathways into this industry for the next generation,” said Dickson.  

The Doris Fisher Creators Program will connect FIT students with Gap Inc. leaders and creatives through a structured mentorship experience designed to provide exposure to the business of fashion, industry insights, and meaningful professional connection. 

The program will launch in Fall 2026 and run through the academic year, and the inaugural cohort will include students from select disciplines, including Fashion Design, Graphic Design (Apparel), and Fabric Styling.

“Supporting emerging talent is a core expression of Gap Inc.’s purpose in action. Through initiatives such as The Doris Fisher Creators Program — alongside This Way ONward, the Rotational Management Program, and our broader internship and mentorship efforts — the company continues to bridge the opportunity gap for young people looking to start meaningful careers in fashion and retail,” added Amy Thompson, Chief People Officer at Gap Inc.   

“We are incredibly proud to be the first public college to partner with Gap Inc. on this groundbreaking mentorship program. This remarkable opportunity with one of the world’s most iconic brands will support 30 talented FIT students over the next year, placing them at the intersection of innovation and impact,” said Jason S. Schupbach, president of FIT.

A benefit for the FIT Foundation, this year’s FIT Annual Gala honored Gap Inc. President & CEO Richard Dickson and was attended by distinguished guests and alumni including Ciara, Aloe Blacc, Zac Posen, Bob Fisher and others. 

The FIT Foundation provided scholarships totaling more than $3 million in 2025.

Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.

Fibre2Fashion News Desk (RM)



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