The Organisation for Economic Cooperation and Development (OECD) has predicted that the United Kingdom will be the worst-performing G7 economy next year. This is due to high interest rates and restrictive fiscal policies that are expected to hinder medium to long-term economic growth.
In its annual assessment published on Thursday, the OECD revised its U.K. growth forecast for GDP to 0.4 percent for this year and 1 percent for 2025. This is a decrease from its previous predictions of 0.7 percent and 1.2 percent, respectively, made in March.
The impact of these policies is expected to weigh heavily on the U.K.’s economic performance in the coming years, with the country likely having the slowest economic growth among the G7 countries next year and ranking as the second worst for this year, just behind Germany.