OECD Warns UK Economy Set for Slowdown Despite Stronger Growth This Year

The Organisation for Economic Co-Operation and Development (OECD) has revised its forecast for UK economic growth, predicting a slowdown next year despite a stronger-than-expected rebound in 2026.

According to the OECD, GDP growth is expected to reach 1.1 per cent in 2026, up from a previous estimate of 0.9 per cent, but still below the 1.4 per cent recorded last year.

The organisation attributes this revised figure to solid domestic demand during the second quarter, which supported household spending and contributed to the improved outlook.

However, the OECD predicts that GDP growth will slow down to just one per cent next year, citing a broader global slowdown, elevated energy costs, and a higher policy rate as factors likely to constrain momentum.