UK economy expected to be second-worst in G20 this year – OECD

[pellinore]

The UK economy is expected to perform the worst out of any G20 economies apart from Russia this year and next, new analysis has suggested.

The Organisation for Economic Co-operation and Development said that it expects a 0.2 per cent fall in UK gross domestic product this year, followed by a rise of 0.9 per cent next year.

It is worse than all countries but Russia, whose GDP is forecast to dip 2.5 per cent this year followed by a 0.5 per cent drop in 2024, the organisation’s economists said.

It means that the UK is the only country apart from Russia – which is subject to serious sanctions – to see its economy shrink this year.

UK economy expected to be second-worst in G20 this year – OECD | The Independent

Edited March 17, 2023 by pellinore

[L.A.T.1961]

What was remarkable about the OECD’s forecasts was how badly Britain compares to other nations. 

Official data shows that German GDP is already falling – it shrank by 0.4pc in the last three months of 2022 – while UK GDP was flat over the same period, and grew 0.3pc month-on-month in January.

Martin Beck, chief economic adviser to the EY Item Club, said: “It doesn’t make any sense to me. They have been overly negative for a long time on the UK and this is just doom and gloom again.”

The UK was hit harder than other countries by the energy crisis because it is more dependent on gas, but this should mean it will now recover more quickly as energy prices fall, Mr Beck said. 

“The OECD takes the downside when prices are rising but they don’t reflect the upside.”

https://www.telegraph.co.uk/business/2023/03/17/oecd-accused-misleading-forecasts-predicting-british-economy/

[itsnotoutthere]

54 minutes ago, L.A.T.1961 said:

What was remarkable about the OECD’s forecasts was how badly Britain compares to other nations. 

Official data shows that German GDP is already falling – it shrank by 0.4pc in the last three months of 2022 – while UK GDP was flat over the same period, and grew 0.3pc month-on-month in January.

Martin Beck, chief economic adviser to the EY Item Club, said: “It doesn’t make any sense to me. They have been overly negative for a long time on the UK and this is just doom and gloom again.”

The UK was hit harder than other countries by the energy crisis because it is more dependent on gas, but this should mean it will now recover more quickly as energy prices fall, Mr Beck said. 

“The OECD takes the downside when prices are rising but they don’t reflect the upside.”

https://www.telegraph.co.uk/business/2023/03/17/oecd-accused-misleading-forecasts-predicting-british-economy/

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