The UK economy has recovered to pre-pandemic levels, but high energy prices and the rising cost of living are slowing growth, the Organisation for Economic Co-Operation and Development (OECD) said.
The UK faces a combination of rocketing energy costs, increasing global prices of goods and services, and economic uncertainty fuelled by the war in Ukraine. Furthermore, the UK’s gross domestic product (GDP) will reach a standstill with completely flat growth in 2023, according to the latest forecast.
Improving “sluggish” productivity and reducing regional and gender disparities can help keep the economy’s recovery on track, the international organisation said.
Mathias Cormann, the OECD’s secretary-general, said: “Like other economies around the world, the UK economy faces a number of headwinds, with pre-existing structural challenges magnified by the pandemic and Russia’s war of aggression against Ukraine. The key to stronger economic growth and better opportunities...