UK Economic Growth Slows as OECD Predicts 1% Growth Next Year

A new forecast from the Organisation for Economic Co-operation and Development (OECD) indicates that the UK's economic growth will slow down next year. According to the report, this is due to various factors, including the ongoing war in the Middle East and recent increases in energy prices.

The OECD predicts that UK economic growth will be weaker than 1.4 per cent reported last year, dipping slightly to around 1 per cent next year. This comes after a previously predicted 1.1 per cent growth was upgraded to 1.1 per cent for this current year, thanks to solid domestic demand in the second quarter.

The report also indicates that UK inflation will be below previous forecasts this year but will then take longer than expected to fall back to target levels. The OECD expects inflation to slow to 2.6 per cent next year, pointing to a shallower drop than previously expected.