UK economic outlook has worsened, warns OECD

Global forecast contrasts with downbeat assessment for a British economy constrained by high interest rates, price rises and staff shortages

The UK’s economic outlook has worsened this year as high interest rates and the lingering effects of last year’s surge in inflation take a bigger toll on growth than previously expected, according to the Organisation for Economic Cooperation and Development (OECD).

In a downbeat assessment of the potential for the economy to expand in 2024, the Paris-based thinktank downgraded its forecast for UK growth this year from last November’s forecast of 0.7% to 0.4%.