England – The United Kingdom’s economic performance will be the worst among the G7 next year, due to high interest rates and the effects of rising inflation, the OECD reported.
In a pessimistic assessment, the Paris-based think tank also lowered its forecast for UK growth this year to 0.4% from November’s forecast of 0.7%.
The organization expects the UK to fall to the bottom of the G7 growth table in 2025, with growth of 1%, just behind Germany at 1.1%. The United States and Canada are expected to be the fastest growing economies among the G7 next year, each growing at 1.8%.
She said that the growth rate in Britain will diminish due to the continued rise in prices in the service sector and the shortage of skilled employees, which will hinder the expected cuts in interest rates, expecting the Bank of England to postpone the first cut in interest rates from 5.25% until the fall after fears of a possible growth recovery. the prices.
Global GDP growth is expected to reach 3.1% in 2024, unchanged from 2023, before rising to 3.2% in 2025 thanks to stronger growth in household income and lower interest rates.
Source: “The Guardian”
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2024-05-03 02:03:36