UK’s growth will be least in G7 by 2025, OECD expects, as low business investment and multiple pressures bear down
A lack of skilled workers in the country is pushing up UK wages. The dearth of affordable housing has seen landlords put up rent by 9% in a single year, weighing on inflation. New costs and controls at the border after Brexit are creating headaches for exporting companies. This cocktail of pressures on the UK economy has prompted analysts from the Organisation for Economic Cooperation and Development (OECD) to undercut the UK’s own national forecasts for growth. By 2025, the Paris-based thinktank says, UK growth will be below that of any advanced economy in the G7.
The OECD has pencilled in a boost to GDP of just 0.4% in 2024, a lower rate than any G7 member apart from Germany. By 2025, the UK slips to the back, with just 1% growth compared with an average of 1.5% in the euro area. Up to now, the government could at least rely on Germany to own the title of sick man of Europe, after some updates to the national statistics showed the UK recovered more quickly from the pandemic and Brexit than was previously thought.
Continue reading…UK’s growth will be least in G7 by 2025, OECD expects, as low business investment and multiple pressures bear downUK will be worst performer in G7 next year, OECD forecastsA lack of skilled workers in the country is pushing up UK wages. The dearth of affordable housing has seen landlords put up rent by 9% in a single year, weighing on inflation. New costs and controls at the border after Brexit are creating headaches for exporting companies. This cocktail of pressures on the UK economy has prompted analysts from the Organisation for Economic Cooperation and Development (OECD) to undercut the UK’s own national forecasts for growth. By 2025, the Paris-based thinktank says, UK growth will be below that of any advanced economy in the G7.The OECD has pencilled in a boost to GDP of just 0.4% in 2024, a lower rate than any G7 member apart from Germany. By 2025, the UK slips to the back, with just 1% growth compared with an average of 1.5% in the euro area. Up to now, the government could at least rely on Germany to own the title of sick man of Europe, after some updates to the national statistics showed the UK recovered more quickly from the pandemic and Brexit than was previously thought. Continue reading…
