OECD’s comment on the UK | General News

The Organisation for Economic Co-operation and Development (OECD) said the UK economy was regaining momentum after a period of weak growth, but that a comprehensive reform agenda needed to continue to sustain this momentum and revive medium-term growth.

According to the OECD’s research on the UK economy, the country’s economy is expected to grow by 1.1 percent this year and 1.2 percent in 2025, following 0.1 percent growth in 2023.

While headline inflation is moving towards the 2 percent target as pressures on energy and food prices ease, pressures on service prices are expected to continue and core inflation is expected to remain high at 3.7 percent this year and 2.8 percent in 2025. This is expected to require monetary policy to remain restrictive.

In this context, according to the OECD, the UK needs to continue to develop the momentum regained in the economy after a period of weak growth and to continue the comprehensive reform agenda to revive medium-term growth.

While it is anticipated that spending pressures will increase due to the ageing population in the country and the investments required to support the fight against climate change, it is recommended that a transparent government strategy be implemented to support investments to unlock the country’s growth potential.

According to data released today by the British Office for National Statistics, the country’s economy did not grow in July after a flat course in June.

British Finance Minister Rachel Reeves said she was aware of the extent of the challenges faced after 14 years of low growth, adding: “That’s why we have to take long-term decisions now to fix the foundations of our economy.”

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