UK Will Suffer More Than Developed Economies -OECD


 The Organization for Economic Co-operation and Development (OECD) has warned that the UK economy will suffer a greater impact from the global energy crisis than other developed countries.

According to the latest report released, it predicts that Britain will suffer a worse contraction than any other country in the G7 next year.

The OECD predicts the UK economy will contract by 0.4% in 2023 followed by slower growth in 2024 to just 0.2%.

However, this forecast is actually better than the UK's Office for Budget Responsibility (OBR) which projected a contraction of 1.4% in 2023.

In the meantime, a gloomy forecast by the Bank of England (BOE) earlier this month said the recession in the UK could last for two years.

Returning to the original title, the OECD says the war in Ukraine has affected the economy unevenly, with European countries bearing the brunt of the impact on business, trade and energy price spikes.

The G7, which includes the United States, the UK, Canada, France, Germany, Italy and Japan, is likely to see weak growth.

But Germany is among the main economies other than the UK projected to record a contraction, the OECD said.