Blow for Brits as OECD downgrades UK's economic growth forecast for this year ... trends now
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The UK's growth forecasts have been downgraded by the OECD over fears sticky inflation is hitting the economy.
The international body expects 'sluggish' performance in 2024 and 2025 - with the country performing worse than any other G7 member next year.
Chancellor Jeremy Hunt said the estimates were 'not surprising' but the government was 'winning the war' against spiralling prices.
The report came as the US Federal Reserve played down hopes of early interest rate cuts, casting a shadow over the prospects of the Bank of England easing pressure on mortgage-payers soon.
In its latest economic outlook report, the OECD pointed to 'some signs that the global outlook has started to brighten' amid easing inflation.
Global gross domestic product (GDP) is expected to grow by 3.1 per cent this year, unchanged from 2023.
The UK's growth forecasts have been downgraded by the OECD over fears sticky inflation is hitting the economy
However, the UK's economy is expected to grow at a much slower rate after interest rate rises in order to bring down inflation.
The economic organisation said 'GDP growth is projected to remain sluggish' in the face of a 'waning drag from past monetary tightening'.
The economy grew by 0.1 per cent last year and is expected to see growth improve to 0.4 per cent this year, according to the OECD.
However, that represents a downgrade after previously predicting 0.7 per cent growth for 2024.
It would be the second weakest growth across the G7, with only Germany – which has a growth forecast of
