UK surpasses Japan, Italy, and Germany in OECD's growth forecast for 2024
In recent months, the UK economy has surpassed several G7 nations in growth forecasts, yet it is still expected to experience the highest inflation rate among the group, according to economists, News.Az reports citing The Standard.
The Organisation for Economic Co-operation and Development (OECD) has placed the UK joint second in its economic growth forecasts for the rest of 2024.The prediction of 1.1% growth for the whole of this year puts the UK alongside Canada and France but behind the US.
Last time the OECD put out a forecast, in May, it had the UK at the bottom of the pile in the informal bloc of seven countries, which also includes Japan, Italy and Germany.
Its prediction of 2.7% inflation for this year means the UK is still the country in the G7 with the fastest-rising prices.
The OECD wrote in its interim report on the world economy that global economic growth “has remained resilient and inflation has continued to moderate”.
It added: “Recent activity indicators suggest ongoing momentum, especially in services sectors. Real wage growth is now supporting household incomes and spending, though purchasing power has yet to fully return to pre-pandemic levels in many countries.
“Global trade is recovering faster than expected, but shipping costs remain elevated and export orders have recently moderated.”
But it added: “Significant risks remain. Persisting geopolitical and trade tensions could increasingly damage investment and raise import prices.”
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