The U.K.’s economy is predicted to underperform among the G7 countries next year, according to a new assessment by the Organisation for Economic Cooperation and Development (OECD). This forecast is based on high interest rates and restrictive fiscal policies that are expected to hinder medium to long-term economic growth.
The OECD has revised its U.K. growth forecast for GDP downwards for this year from 0.7 percent to 0.4 percent, and from 1.2 percent to 1 percent for 2025, respectively, compared to its previous predictions made in March. This indicates that the U.K.’s economy is likely to have the slowest economic growth among the G7 countries next year and will rank as the second worst for this year, just behind Germany.
The impact of high interest rates and tight fiscal policies is expected to weigh heavily on the U.K.’s economic performance in the coming years, making it clear that there are significant challenges ahead for Britain’s economy as it continues to grapple with Brexit uncertainty and other global economic pressures.
