UK economy will grow by less than expected next year, OECD says
Summary
The UK’s economy is expected to grow by 1% in 2027, which is slightly less than previously predicted by the Organisation for Economic Co-operation and Development (OECD). The OECD raised the growth forecast for 2026 but lowered it for 2027 due to higher fuel prices and global risks like the US-Israel war in Iran affecting supply and inflation.Key Facts
- The OECD predicts the UK economy will grow 1.1% in 2026, up from an earlier estimate of 0.9%.
- Growth for 2027 is forecasted at 1%, down from the previous forecast of 1.1%.
- The ongoing conflict involving the US and Israel in Iran is creating economic uncertainty globally.
- Higher fuel prices, partly caused by the Middle East conflict, are expected to slow economic growth.
- The OECD warns that supply disruptions and inflation will influence the UK’s economy.
- Other countries like Australia, Canada, and those in the Euro-area are also seeing slower growth predictions.
- Climate change impacts, such as severe weather from El Nino, could affect food production and prices worldwide.
- Chancellor John Healey is preparing the UK Budget amid these economic challenges.
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