The UK economy will grow at zero percent next year.
According to a think tank, the UK economy will grow slower than expected this year and will stagnate next year.
According to the Organization for Economic Cooperation and Development, the UK economy will grow by 3.6 percent this year, followed by 0 percent growth the following year.
It means that the United Kingdom’s economy will fall from the second-fastest growing in the G7 group of industrial nations to the slowest growing in 2023.
The G7 countries are the United States, Canada, Germany, Japan, France, and Italy.
The OECD is a group of countries whose goal is to aid economic development, raise living standards, and promote global trade growth.
The chief economist of the Paris-based think tank, Laurence Boone, said the UK was being hit.
Inflation is expected to continue rising, peaking at more than 10% by the end of this year before gradually declining to 4.7 percent by the end of 2023.
The report, however, ignores the chancellor’s emergency measures announced on May 26th. These measures, which included a £400 energy bill discount for every UK household, are estimated to be worth around £15 billion.
According to a Treasury spokesperson, the forecasts would worry many people.
“While we cannot completely protect the UK from global pressures, our economy is well-positioned to meet these challenges. We have a growth strategy, and we help people with their living expenses “They also added.
The reductions in UK economic growth coincide with a global slowdown.
Only Argentina and Australia had their growth forecasts raised.
“Russia’s war against Ukraine is set to cost the world dearly. A humanitarian crisis is unfolding in front of our eyes, killing thousands of people, forcing millions of refugees to flee their homes, and jeopardizing the economic recovery that had begun after the pandemic lasted two years “According to the organization.
“Because Russia and Ukraine are large commodity exporters, the war has caused energy and food prices to skyrocket, making life much more difficult for many people around the world.”
According to the OECD, Russia’s attack on Ukraine will result in higher inflation and lower growth for at least the next year.
However, the organization emphasized that governments and central banks could work together to avoid prolonged hardship.
