"The OECD cut the UK's growth forecast for 2026 to just 0.7 per cent, down from a previous estimate of 1.2 per cent, placing it among the weakest performers in the G20."
"Rising fuel costs are already being felt at petrol stations and in heating bills, while businesses are facing higher input costs across supply chains."
"The combination of slowing growth and rising inflation raises the prospect of a stagflationary environment, complicating policy decisions for central banks and governments."
The OECD has downgraded the UK's growth forecast for 2026 to 0.7%, citing vulnerability to rising energy costs due to the Middle East conflict. The UK is expected to have one of the highest inflation rates among G7 economies, with inflation projected to reach 4% this year. The conflict has disrupted oil and gas supplies, leading to increased wholesale prices and economic activity decline. A prolonged conflict could result in global energy shortages, affecting food prices and agricultural yields, complicating policy decisions for governments and central banks.
Read at Business Matters
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