Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

UK set for weak growth and highest inflation in G7, OECD says

UK set for weak growth and highest inflation in G7, OECD says

By Andy Bruce

LONDON (Reuters) -Britain will suffer some of the lowest rates of economic growth and highest inflation among Group of Seven countries this year and next, forecasts from the Organisation of Economic Co-operation and Development suggested on Thursday.

The OECD cut this year’s growth forecast for the British economy to 0.4% from the 0.7% it predicted in February. Only Germany is expected to perform worse among G7 advanced economies, which also include Canada, France, Italy, Japan and the United States.

UK growth in 2025 is expected to recover to just 1.0%, compared with the OECD’s previous forecast of 1.2%, putting Britain at the bottom of the G7.

The OECD forecasts showed Britain’s annual rate of consumer price growth was likely to be the highest among G7 countries, both this year and next.

The forecasts are awkward for Prime Minister Rishi Sunak, whose Conservative Party is lagging behind the opposition Labour Party in opinion polls ahead of a national election likely later this year.

Sunak has told voters it would be unwise to ditch his party just as his economic plan is starting to work.

“This forecast is not particularly surprising given our priority for the last year has been to tackle inflation with higher interest rates,” finance minister Jeremy Hunt said in response to the OECD forecast. He pointed to more optimistic forecasts from the International Monetary Fund.

In April, the IMF similarly predicted Britain would generate the second-slowest growth among G7 countries in 2024, but it forecast faster growth in 2025 than for France, Germany, Italy and Japan.

“Robust real wage growth will support activity in the first half of 2024,” the OECD’s report for Britain said.

“However, sticky services price inflation and fiscal drag will continue to weigh on consumers’ purchasing power, soft external demand will constrain trade growth, and policy uncertainty will impede business investment.”

The opposition Labour Party said the OECD’s downgrade reflected 14 years of failure under the Conservatives.

The OECD said it should be a priority for Britain’s government to rebuild its fiscal buffers, adding this necessitated “credible” budget plans.

Economists have warned that the public spending assumptions underpinning the government’s budget published in March are unrealistic.

(Reporting by Andy Bruce, Editing by Paul Sandle, Tomasz Janowski and Christina Fincher)

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts