OECD Lowers UK GDP Growth Forecasts for 2025 and 2026

OECD Lowers UK GDP Growth Forecasts for 2025 and 2026

The Organisation for Economic Co-operation and Development (OECD) has released a new economic outlook for the United Kingdom. It has also reduced its GDP growth forecast for 2025 and 2026. The organization’s most recent report shows a downturn in projected growth rates, the latest sign of an economy still hobbled by the recession.

For 2025, the OECD has revised the UK’s GDP growth forecast downwards – now to 1.3% from an earlier estimate of 1.4%. This revision underscores a modest change in the anticipated economic recovery trajectory. The 2026 projection has been cut nearly in half. That new revenue projection is now 1.0%, down from their original 1.2% estimate.

Global economic uncertainties persist, compounded by domestic challenges, all of which continue to reverberate through the UK’s financial landscape. These revisions take place against this challenging backdrop. The OECD’s report specifically recommends deliberate and targeted actions to jumpstart growth and deal with chronic underlying economic challenges.

The revised forecasts have stoked worries over inflationary pressures. They further cite new and growing threats to national and international trade patterns that would exacerbate the nation’s decelerating recovery path. Yet as businesses and consumers continue to operate in this new reality, the burden on the federal government continues to grow for policies that promote economic flexibility.

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