UK set for highest inflation in G7 this year

You’d struggle to describe the start of 2023 as anything like ‘good economic times’. But according to the OECD’s economic outlook interim report, it’s better than what’s to come. The report, published this morning, expects rising rates around the world to take their toll on economic growth. Global growth has been downgraded for next year – from 2.9 per cent in 2024 to 2.7 per cent – which is lower than the 3 per cent growth expected this year.

The report notes that a ‘stronger-than-expected’ start to the year makes it all but impossible for growth to keep pace: the fall in energy prices coupled with China’s comeback post-pandemic gave global growth rates their boost. But despite economies proving resilient to rate hikes, there is growing evidence that they are now being felt. This, combined with ‘weaker-than-expected recovery in China’ over the next year has led the OECD to downgrade their global expectations for economic growth.