Based on its annual assessment, the Organisation for Economic Cooperation and Development (OECD) predicts that the United Kingdom will be the worst-performing G7 economy next year. This assessment is due to high interest rates and restrictive fiscal policies predicted to hinder medium to long-term economic growth.
The OECD has revised its U.K. growth forecast for GDP to 0.4 percent for this year and 1 percent for 2025, down from its previous predictions of 0.7 percent and 1.2 percent made in March. These forecasts indicate that the U.K. is likely to have the slowest economic growth among the G7 countries next year, ranking as the second worst for this year, just behind Germany.
According to the OECD, high interest rates and tight fiscal policies are expected to weigh heavily on the U.K.’s economic performance in the coming years.
Overall, these findings suggest that while some countries are experiencing a slight downturn in their economies due to global factors, others like Britain are facing more significant challenges due to their own policy decisions.
In conclusion, while it remains uncertain how long these challenges will persist, it is clear that policy decisions made by governments can have a significant impact on a country’s economic performance in both the short term and long term.