UK growth downgraded by OECD with stagnation expected next year

The UK’s economic growth is expected to be slower than first thought this year and will stagnate in 2023, experts at the Organisation for Economic Co-operation and Development (OECD) have warned.

The international organisation projects that UK GDP will grow by 3.64% this year. In December it had forecast 4.75% growth.

Inflation will peak at over 10% this year and decline to 4.7% by the end of next year.

It comes alongside a global slowdown which is due in large part to the war in Ukraine.

Global growth was been downgraded from 4.46% to 3.02%, the OECD said.

Only Argentina and Australia saw their growth projections upgraded by the OECD.

“This growth slowdown is a price of war which will be paid through lower incomes and fewer job opportunities,” it said.