UK economy to grow slower than previously predicted in 2022
The UK economy will grow less than previously predicted this year and flatline entirely in 2023, according to a new report.
The OECD (Organisation for Economic Co-operation and Development) said it has downgraded its current annual projection for the UK economy due to “declining real incomes and disruptions in energy markets”.
Gross Domestic Product (GDP) is set to grow by 3.4% in 2022 as a whole, the body said in its interim outlook report. In June, the body said the economy was likely to grow by 3.6%.
It comes days after the Bank of England said the UK economy could already be in recession, forecasting that there was likely to be a 0.1% decline in GDP over the current financial quarter.
The OECD also forecast that GDP will stay completely flat in 2023 in the UK.
Germany and Russia are the only two countries in the G20 set for a weaker economic performance next year, with projections of 0.7% and 4.5% declines in GDP respectively, according to the report.
The G20 as a whole is expected to see 2.2% economic growth for the year, a 0.6 percentage point decline compared with the previous forecasts.
The pound has plunged to an all-time low against the US dollar amid hammered market confidence in the Government’s economic plans after the Chancellor last week unveiled the biggest tax cuts in 50 years.