According to a new forecast, the UK will rank joint second for economic growth amongst the wealthiest nations this year.
The British economy is expected to achieve growth of 1.1%, the same as France and Canada, but still tailing the US.
This estimate from the Organisation for Economic Co-operation and Development (OECD) is a positive upgrade from their May forecast, which had indicated a 0.4% growth figure this year.
The Chancellor of the Exchequer, Rachel Reeves, was quick to welcome the revised upward growth trajectory, which comes as the Treasury puts the final touches to the forthcoming Autumn budget.
Investment analysts have cited a number of different reasons behind the stronger outlook. These include increases to public sector pay, an end to train strikes and a more stable political picture in the UK.
In addition, the August interest rate cut by the Bank of England will provide a boost by lowering the cost of borrowing. Whilst the OECD cautioned over significant risks, such as continuing geopolitical and trade tensions, it described underlying economic growth as ‘relatively robust’ in many countries, including the UK.
The OECD is a widely respected think tank whose forecasts are published twice a year. While not immune to error, it strives to give an accurate guide to future economic trends, which it updates when necessary. If you are investment planning in Cheshire or the wider UK economy, the OECD’s predictions are used by private investors and by governments to inform policy decisions.
