The UK economy is expected to grow by 1.1% in 2024, according to a new report.
Raising its UK forecast from just 0.4% in May, the Organisation for Economic Cooperation and Development (OECD) said that the country — along with the United States, Canada and Spain — had shown “robust” growth this year.
In 2025, the UK is predicted to see 1.2% growth.
The global economy “remained resilient” in the first half of 2024, and inflation has continued to moderate, the intergovernmental organisation said in its interim report.
These trends are projected to continue next year, with global growth “stabilising at a moderate pace” and inflation returning to target in most countries by the end of 2025.
Risks highlighted in the report include persisting geopolitical and trade tensions, the possibility of a growth slowdown as labour markets cool, and potential disruptions in financial markets if the projected smooth decrease in the rate of inflation does not materialise. Conversely, the recovery in real incomes could provide a stronger boost to consumer confidence and spending, and further oil price declines would hasten the drop in inflation.
The report added: “Decisive fiscal actions are needed to ensure debt sustainability, preserve room for governments to react to future shocks and generate resources to help meet future spending pressures. Stronger efforts to contain spending and enhance revenues, set within credible medium-term adjustment paths, are key to ensuring that debt burdens stabilise.”
