OECD Downgrades UK Growth Forecast as Global Economic Growth Slows

The Organisation for Economic Co-operation and Development (OECD) has downgraded its UK growth forecast for 2027, citing a slowdown in global economic growth. Despite a stronger-than-expected performance in 2026, with the economy growing by 1.1%, the OECD predicts that this will dip to 0.9% next year.

This comes as the OECD also reports that UK inflation is expected to be below previous forecasts this year at 3.1%, but will then take longer than expected to fall back to target levels, reaching a peak of 4% in early 2027.

The OECD's secretary general Mathias Cormann stressed that central banks 'must act if price pressures sharpen', while chief economist Stefano Scarpetta highlighted the potential risks of a drop-off in global growth due to a slowdown in investment and productivity outcomes.