UK economy to grow 0.9% this year but outlook cut for 2027 – OECD
The OECD said renewed inflation and energy shock effects will squeeze real incomes and weigh on consumer spending and investment.
- The Organisation of Economic Co-operation and Development upgraded the growth forecast for the economy this year, yet reduced the outlook for the coming years amid concerns regarding the war in Iran.
- Conflict in the Middle East creates uncertainty, with economic consequences likely to be felt for some time even after the resolution, the OECD warned.
- Growth is stronger than the 0.7% prediction from March, although the latest forecasts indicate a slowdown for the economy compared to the previous year.
- Inflation is expected to rise this year and then slow down in 2026, as the report warns of pressures "squeezing real incomes" for households.
- Chancellor of the Exchequer Rachel Reeves noted the situation poses significant economic challenges, while the Bank of England anticipates moving to a neutral policy stance in 2027.
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Evening Standard
UK economy to grow 0.9% this year but outlook cut for 2027 – OECD
Forecasts predicted that global economic growth will slow to 2.8% this year, from 3.4% in 2025.
UK growth to fall below 1% with unemployment set to surge as Britain handed bleak economic outlook
Britain’s economic growth is forecast to fall below one per cent next year as rising unemployment and escalating energy costs linked to the Middle East conflict continue to weigh on the economy.The Paris-based Organisation for Economic Co-operation and Development (OECD) said UK gross domestic product would expand by just 0.9 per cent in 2026, down from 1.4 per cent growth in 2025.It also projected unemployment would climb to 5.5 per cent as eco…
Growth to remain below 1 per cent as UK economy struggles with unemployment
What little growth the UK economy will experience this year will be fuelled by high government expenditure, according to the world’s top independent economic organisation. The OECD, the Organisation for Economic Co-operation and Development for long, said public expenditure would “support the economy” even as consumer spending and business investment is set to weaken. The Paris-based think tank said growth this year would be 0.9 per cent, slig…
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