According to a think group, the UK economy will develop slower than projected this year and stall next year.
According to the Organisation for Economic Cooperation and Development, the UK economy will increase by 3.6 percent this year, then 0 percent the next year.
It implies that by 2023, the UK’s economy will have slowed from being the second-fastest in the G7 group of industrial nations to the slowest.
The G7 consists of the United States of America, Canada, Germany, Japan, France, and Italy.
The Organization for Economic Cooperation and Development (OECD) is a collection of countries whose goal is to aid economic development, enhance living standards, and encourage global trade growth.
The UK is being struck hard by a mix of issues, including higher interest rates, more taxes, lower trade, and more costly energy and food, according to Laurence Boone, the Paris-based think tank’s head economist.
Inflation is predicted to continue to rise, reaching over 10% by the end of this year before falling to 4.7 percent by the end of 2023.
The study, however, ignores the chancellor’s emergency measures, which were announced on May 26th. These initiatives are worth roughly £15 billion, and include a £400 energy bill savings for every home in the UK.
The projections, according to a Treasury spokeswoman, will worry a lot of people.
“While we can’t completely protect the UK from global pressures, our economy is well-positioned to meet these difficulties. We have a growth strategy in place, and we’re helping people with their living expenses “They also noted.
The decline in the UK economy coincides with a worldwide recession, which is partly attributable to the conflict in Ukraine.
In its new economic estimate, the OECD reduced global growth from 4.5 percent to 3 percent this year.
Only Argentina and Australia’s growth forecasts have been improved.
“Russia’s war against Ukraine is going to cost the rest of the world a lot of money. A humanitarian disaster is happening in front of our eyes, killing thousands of people, driving millions of refugees to abandon their homes, and jeopardizing the economy’s recovery after two years of epidemic “According to the organization.
“Because Russia and Ukraine are significant commodity exporters, the conflict has driven up oil and food costs, making life considerably more difficult for many people throughout the world.”
Russia’s invasion on Ukraine, according to the OECD, will result in higher prices and slower GDP for at least the next year.
However, the organization emphasized that extended hardship could be avoided if governments and central banks worked together.