UK economy will grow by less than expected next year, OECD says
The OECD has downgraded the UK's 2027 economic growth forecast to 1%, citing the impact of the ongoing conflict in the Middle East. While short-term growth for 2026 was upgraded, long-term prospects are threatened by rising fuel prices and supply chain disruptions.
Why it matters
Geopolitical conflicts are creating global economic volatility, affecting inflation and growth projections for major economies.
Image source, Getty Images By Tom Espiner Business reporter Published 9 minutes ago The UK will grow by less than expected next year amid the ongoing US-Israel war in Iran, an international agency has said.
It is one of many countries whose economic prospects are facing a hit due to the prolonged conflict, the Organisation for Economic Co-operation and Development (OECD) said.
The downgrade to the UK's economic growth outlook is moderate, according to the OECD, which predicted it will grow by 1% in 2027, against an earlier forecast of 1.1%.
The agency also upgraded the UK's growth outlook for 2026, from an expected 0.9% to 1.1% for the year.
The prediction comes as Chancellor John Healey prepares to deliver his first Budget at the end of October.
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