OECD Cuts UK Growth Forecast Amid Ongoing Economic Uncertainty

The Organisation for Economic Co-operation and Development (OECD) has revised its growth forecast for the UK, predicting that the economy will grow by just one per cent next year.

This is down from a previous forecast of 1.1 per cent, but the OECD has increased its growth estimate for the current year to 1.1 per cent due to solid demand levels in the second quarter and higher-than-expected GDP figures.

The OECD attributes the slower growth next year to the ongoing effects of the Iran war, which is expected to continue dampening activity over the next 12 months.

High interest rates are also likely to have a negative impact on the economy. Inflation in the UK is forecast to average 3.1 per cent this year and 2.6 per cent next year, lower than previously predicted but still higher than the Bank of England's target of two per cent.