The UK’s economic growth is set to be among lowest in the G20, with only Russia performing worse.
The OECD has forecast that high inflation and tax increases will cause growth to fall to zero, after this year’s 3.6%. It said inflation will average 7.4% next year, after hitting double digits later this year.
Economists have predicted that the UK’s rate of inflation will be the highest in the G7 for the next two to three years.
The OECD said the economy would be “stagnating in 2023 due to depressed demand”. The organisation said it expected the Bank of England to raise the interest rate from the current 1% to 2.5%.
The forecast follows a warning from the British Chambers of Commerce that the UK economy will “grind to a halt” before shrinking in the second half of this year.
The FT (£)
and The FT (£)
The Guardian
and The Guardian
