The Organisation for Economic Cooperation and Development (OECD) has revised its forecast for the U.K.’s economic growth in the coming years. According to its annual assessment published on Thursday, the U.K. is expected to be the worst-performing G7 economy next year, with a predicted GDP growth rate of 0.4 percent for this year and 1 percent for 2025. This is a significant decrease from its previous predictions of 0.7 percent and 1.2 percent made in March.
The slowest economic growth among the G7 countries next year will be due to high interest rates and restrictive fiscal policies that are expected to hinder medium to long-term economic growth in the UK, according to OECD report. These policies are likely to weigh heavily on the UK’s economic performance in the coming years, making it clear that there is much work to be done if they want to improve their economy’s health.