The UK will be the only major economy, apart from Russia, to contract this year, according to OECD forecasts
The UK will be the only major economy, apart from Russia, to contract this year, according to forecasts.
The Organization for Economic Co-operation and Development (OECD) estimates that Britain’s gross domestic product (GDP) will fall by 0.2% in 2023 – the second worst performance in the group of G20 countries after the estimated 2.5% drop of Russia.
This means the UK is the only member of the G7 group of advanced economies, which also includes the US, Japan, Germany, Canada, France and Italy, to suffer a contraction this year. .
Decrease: OECD estimates Britain’s gross domestic product will fall 0.2% in 2023
The second worst performer in the group is Germany, which the OECD estimates will see economic growth of just 0.3% this year.
The decline for the UK was better than expected in November, when the OECD forecast a decline of 0.4%. Britain’s odd-man status in the G7 is a blow to Chancellor Jeremy Hunt as he sought to revive budget growth earlier this week.
But the OECD data was compiled before Hunt presented his spending plans, meaning the UK’s economic outlook could change again once his policies start to take effect.
Economist Julian Jessop said the OECD forecast should be taken with a “handful of salt”. The forecast did not take into account measures unveiled in the budget, which Jessop said could “tip a negative into a positive.” He also accused the OECD of “the usual institutional bias against the UK because of Brexit”.
