The Organisation for Economic Cooperation and Development (OECD) has made a prediction that the UK will be the worst performing economy in the G7 group next year. This is due to a combination of high interest rates and restrictive fiscal policy, which are expected to hinder medium to long-term economic growth. On Thursday, the OECD published its annual assessment of the UK economy, lowering its growth outlook for GDP to 0.4 percent this year and 1 percent in 2025. This is a decrease from its previous projection of 0.7 percent and 1.2 percent, respectively, in March.
The new predictions indicate that the UK will be the slowest growing economy in the G7 group of countries next year and the second slowest this year, following Germany. These projections highlight the challenges facing the UK economy and the need for policy changes to stimulate growth and improve economic performance in the coming years. The OECD also noted that while inflation remains low, it is becoming increasingly difficult to control due to rising energy prices and supply chain disruptions caused by Brexit uncertainty.
