From Morningstar: 2024-09-25 08:11:00

The UK economy is predicted to have the highest inflation among G7 countries, despite climbing to joint second in economic growth forecasts for the rest of 2024, according to the OECD. The forecast of 1.1% growth puts the UK behind the US but ahead of countries like Canada and France.

In its interim report on the world economy, the OECD noted that global economic growth has been resilient, with ongoing momentum in services sectors. Real wage growth is supporting household incomes, but global trade is recovering faster than expected despite persisting risks like geopolitical tensions and elevated shipping costs.

Despite the UK’s improved economic outlook, with growth forecasts of 1.1% in 2024 and 1.2% in 2025, the OECD urges Chancellor Rachel Reeves to consider wider tax reforms ahead of the October Budget. The UK is set to have joint-fourth fastest growth in 2025, with inflation at 2.4%, the fastest in the G7.

Reeves emphasized the government’s focus on economic growth, with plans to rebuild Britain and deliver on the promise of change. The upcoming budget aims to fix the foundations for future growth, addressing the challenges and opportunities facing the UK economy.



Read more at Morningstar: UK Leapfrogs Japan, Italy and Germany in 2024 OECD…