OECD downgrades UK growth forecast to 1.4% for 2025

2026 forecasts also lower

The Organisation for Economic Co-operation and Development has lowered its forecasts for UK economic growth amid rising concerns over geopolitical uncertainty and the potential downfall from US President Donald Trump’s tariff policies.

The OECD lowered its UK GDP growth projections for 2025 to 1.4% for this year, down from the agency's 1.7% forecast in December 2024. Similarly, growth expectations for 2026 were lowered by 0.1 percentage points to 1.2%. In addition, the OECD expects headline inflation to hover at 2.7% in 2025, unchanged from its December outlook. 'Tough year ahead' as UK GDP shrinks 0.1% in January Despite the trim in forecasts, UK Chancellor Rachel Reeves said the UK is still expected to be "Europe's fastest growing G7 economy over the coming years – second only to the US". According t...