UK growth second-worst in the G20 after Russia, predicts OECD
The UK will be the only major economy to shrink this year, after Russia, according to OECD forecasts
The UK is forecast to be the only major economy to shrink this year, after Russia.
The Organization for Economic Co-operation and Development (OECD) estimates that Britain’s gross domestic product (GDP) will fall by 0.2 per cent in 2023 – the second worst performance in the G20 countries after the estimated decline of Russia with 2.5 percent.
It 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 experience contraction this year.
Shrinking: OECD estimates UK gross domestic product to fall by 0.2 percent in 2023
The second worst player in the group was Germany, which the OECD estimates will grow its economy by just 0.3 percent this year.
The decline for the UK was better than previously estimated in November, when the OECD forecast a 0.4 percent decline. Britain’s odd man out in the G7 is a blow to Chancellor Jeremy Hunt as he attempted to revive his budget growth earlier this week.
But the OECD data was collected before Hunt delivered his spending plans, meaning the UK’s economic outlook could change again once his policies start working.
Economist Julian Jessop said the OECD’s forecasts should be taken with a ‘handful of salt’. The forecasts did not take into account the measures revealed in the budget, which Jessop said could “turn a negative into a positive.” He also accused the OECD of “the usual institutional bias against the UK because of Brexit.”