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UK set for faster growth in 2025 but high inflation too, OECD forecasts

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The OECD on Wednesday bumped up its growth forecast for Britain's economy next year, citing a surge in government spending that is also likely to push inflation to the top of the G7 charts.
The UK is expected to experience faster economic growth in 2025, with the OECD forecasting a GDP increase of 1.0% for 2024 and 1.7% for 2025, following a contraction in 2023. Despite this growth, inflation is projected to remain high, averaging 2.9% in 2024 before dropping to 2.5% in 2025. The OECD attributes this growth to a recovery in household incomes and a decrease in energy prices, although it warns that inflation could persist due to tight labor markets and potential wage pressures. Additionally, the OECD suggests that the UK's economic performance could be influenced by global economic conditions, including geopolitical tensions and the ongoing effects of Brexit.

Read the Full Reuters Article at:
[ https://www.reuters.com/world/uk/uk-set-faster-growth-2025-high-inflation-too-oecd-forecasts-2024-12-04/ ]