The global economy has been more resilient than expected in the face of Donald Trump's tariffs, but is set to slow over the next year, the Organisation for Economic Co-operation and Development (OECD) has warned. The Paris-based club of industrialised countries has upgraded its projection for global GDP this year, to 3.2% up from the 2.9% it expected in its last forecast in June.
Venkatakrishnan said that, while the government needed to restrict rising public sector wages, the inflationary impact of pay rises was an issue across the UK economy. While UK wage growth has slowed in recent months it is still running at an annual rate of 5.7% in the public sector, excluding bonuses. Private sector wage growth is running at an average of 4.8%.