The Organisation for Economic Co-operation and Development (OECD) has raised its forecast for UK economic growth in 2026 to 1.2% from its previous estimate of 1%, the Paris-based organization announced on Tuesday.
This upward revision comes as the OECD points to the positive impact of Chancellor Rachel Reeves’ budget on consumption, despite continued pressure from global uncertainty that could keep inflation under pressure.
Looking ahead, the OECD expects the UK economy to grow by 1.3% in 2027, according to its latest World Economic Outlook.
The organization stressed the importance of precise timing in the fiscal consolidation process, noting that there are “significant risks to growth and upside risks to inflation.”
It advised that a well-calibrated approach combining revenue-raising and spending-cutting measures remains essential for the UK economy.
