The Organisation for Economic Cooperation and Development (OECD) has predicted that the U.K. will be the worst performing economy in the G7 group next year. This is due to high interest rates and restrictive fiscal policy, which are expected to hamper medium to long-term economic growth. The OECD published its annual assessment of the U.K. economy on Thursday, lowering its growth outlook for GDP to 0.4 percent this year and 1 percent in 2025. This is a decrease from its previous prediction of 0.7 percent and 1.2 percent, respectively, in March.
The new predictions indicate that the U.K. will be the slowest growing economy in the G7 group of countries next year, and the second slowest this year, following Germany. These projections highlight the challenges facing the U.K. economy and the need for policy changes to stimulate growth and improve economic performance in the coming years.