Higher government spending will temporarily lift the UK’s economic growth next year, according to the Organisation for Economic Co-operation and Development, which also warned of accelerating inflation and the “crowding out” of private investment.
The OECD said Britain’s economy would be one of the best-performing in the G7 next year, with a growth rate of 1.7 per cent of GDP.
This is up from a previous forecast of 1.2 per cent and an acceleration from the 0.9 per cent now expected this year, which was downgraded from 1.1 per cent. The 2024 growth outlook was weakened after the economy grew by only 0.1 per cent in the third quarter.
The United States is still on course to be the best-performing G7 economy next year, expanding