OECD Upgrades UK Growth by Most In G-7, Warns on Inflation
- Growth outlook a boon for Keir Starmer’s new Labour government
- But BOE faces toughest job keeping price growth on target
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The OECD upgraded UK growth forecasts for the next two years by more than any other Group of Seven nation, despite lingering concerns about underlying inflation pressures in Britain.
The British economy will expand by 1.1% this year after a “relatively robust” performance in recent months — making it the second-fastest in the G-7 after the US — and by 1.2% in 2025, the OECD said on Wednesday. In May, the Paris-based think tank had forecast growth of just 0.4% this year and 1% in 2025.