OECD Downgrades UK Growth Forecast to Just 1% in 2027

The Organisation for Economic Co-operation and Development (OECD) has downgraded its forecast for UK economic growth in 2027, citing higher energy prices, interest rates, and continued global uncertainty.

The OECD now expects the UK economy to expand by just 1 per cent next year, down from a previous forecast of 1.1 per cent.

The Paris-based organisation also predicts that the Bank of England will cut interest rates in 2027, with Bank Rate falling from 3.75 per cent to 3.5 per cent as inflationary pressures begin to ease.