OECD cuts UK growth forecasts as Rachel Reeves grapples with weak economy

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According to the OECD, the UK growth will weaken this year and the next expectation, as Chancellor Rachel Reeves struggles to speed up the economy.

Paris-based agency on Monday trimmed it UK GDP Estimates of growth for 2025 to 1.4 percent, the disappointing recent economic performance reduces 0.3 percent point points from its previous calculations.

The OCD has added to its interim economic view that its forecast for the UK growth year in 2026 will rise to 1.2 percent after the reduction of 5.5 percent points.

The downgrade came forward on March 2 march on March 2, before the Rive’s Higher Steks Spring Statement, when official forecasts are expected to show many weak views of GDP.

Countries of the world, including the United Kingdom, are also equipped with US President Donald Trump’s trade war pressure.

The The latest OECD forecast Factors of 25 percent tariff imposed by Trump to import from Canada and Mexico, increase its 20 percent point tariffs in China, as well as US tax on aluminum and aluminum.

United States Tariff The OCD says that the global activities will be drawn, as well as add trade costs and the consumer will increase the price of the product, the OCD has said.

Interim view has downgrade the output forecast for a dozen G20 countries, which can achieve the UK’s second highest growth in G7 in the United States in 2021.

However Reeves unexpectedly searches for new sources before its Spring Statement after the UK economy Contract by 0.1 percent In January, in the field of manufacturing, powered by weakness, according to official statistics. From May last year, growth has been largely suspended.

Reeves are ready to predict weak growth from the UK financial guard, which Britain and other European countries in the region will increase the pressure on the public money as Trump’s disturbed military commitment is accelerating.

The budget responsibility office is expected to be widely spent on March 2, which will be wiped out by the main financial rules of the Reeve, and will be wiped out by the cost of taking higher orrow, and will be forced to penile new public expenditure.

October forecasts 2 percent of GDP growth in OBR 2025 and 1.8 percent in 2026, but forecasters in the IMF and the Bank of England Been less optimisticThe

The OCD chief economist -Lovero Pereira, called for arrangements for the UK to take arrangements: “The UK’s Debt is fairly high, so it is time to ensure that the financial situation is under control.”

In interim point of view, the OCD says that central banks around the world must “be vigilant” due to ongoing inflation pressure.

It has predicted that the UK inflation will decrease to 2.5 percent this year and then stand at 2.5 percent in 2026, giving Bowk interest rates to lower interest rates.

The rates are expected to keep the rates unchanged when it meets after BOE Thursday Trimed by a quarter of them In the last month 4.5 percent.

The OCD said the consequences of global inflation from increasing trade barriers will depend on the level of increasing.

“The relative price of trade products due to tariffs is likely to be adjusted, but the sequence of this national change, or the symptoms that are increasing in fixed-Sambazar, may probably require otherwise policy rates,” added.

Earlier this month, Reeves acknowledged a strict economic outlook in the UK because of global trade hostility. “I don’t want to see the tariffs rise,” said a lobby group for Reeves manufacturers at an event organized by Make UK.

On Monday, he said: “This report shows that the world is changing, and the global headwinds are being felt like uncertainty across the board.

“A changed world means Britain must also change, and we are providing a new era of stability, protection and renewing to protect our country and protect our country.”