The Organisation for Economic Cooperation and Development (OECD) has predicted that the UK will be the worst-performing G7 economy next year, according to its annual assessment published on Thursday. This is due to high interest rates and restrictive fiscal policies that are forecast to hinder medium to long-term economic growth.
The OECD revised its UK growth forecast for GDP to 0.4 percent for this year and 1 percent for 2025, a decrease from its previous predictions of 0.7 percent and 1.2 percent made in March. These forecasts suggest that the UK is likely to have the slowest economic growth among the G7 countries next year and ranks as the second worst for this year, just behind Germany.
High interest rates and tight fiscal policies are expected to have a significant impact on the UK’s economic performance in the coming years, weighing heavily on its medium to long-term growth prospects.
