According to the Organization for Economic Cooperation and Development (OECD), the UK’s economy will experience the worst downturn of any advanced economy. The global energy crisis will have a greater impact on the UK economy than it will on other leading nations.
It stated that the United Kingdom will contract more than any other G7 nation in the upcoming year.
Germany is the only other major economy that is expected to shrink, and growth in the US and the eurozone will be weak.
In 2023, the OECD anticipates a “significant growth slowdown” worldwide.
According to the OECD’s most recent report, the global economy will expand by 2.2% next year due to the strength of emerging economies.
However, the OECD stated that the war in Ukraine was having an uneven impact on economies, with European nations bearing the brunt of the impact on business, trade, and the rise in energy costs.
The United States, the United Kingdom, Canada, France, Germany, Italy, and Japan are all members of the G7.The OECD predicts that growth will be weaker in most of the group’s countries, but that only Germany and the UK will shrink.
The OECD predicts that the UK’s economy will shrink by 0.4 percent in 2023, and then it will only grow by 0.2 percent in 2024.
In contrast, the UK’s Office for Budget Responsibility (OBR) made a prediction last week that the country would shrink by 1.4% in the coming year. However, it also said that growth would be stronger, at 1.3% in 2024.According to the OBR, this would result in the greatest ever decline in standard of living.
The Bank of England predicted earlier this month that the economic downturn could last for two years.