OECD warns UK, Germany of economic contraction
The OECD predicts a "significant slowdown in growth" globally in 2023. However, the OECD said that the war in Ukraine affected the economies differently, and European countries bore the brunt of the rise in trade and energy prices. In addition to this, among the G7 countries, only Germany and the UK will experience contraction. The G7 includes the US, UK, Canada, France, Germany, Italy, and Japan.
- Economy
- A News
- Published Date: 10:54 | 23 November 2022
- Modified Date: 11:20 | 23 November 2022
According to the Organization for Economic Co-operation and Development (OECD), the UK economy will take a bigger hit from the global energy crisis than any other leading country.
The OECD predicts a "significant slowdown in growth" globally in 2023. However, the OECD said that the war in Ukraine affected the economies differently, and European countries bore the brunt of the rise in trade and energy prices.
In addition to this, among the G7 countries, only Germany and the UK will experience contraction. The G7 includes the US, UK, Canada, France, Germany, Italy, and Japan.
According to the OECD, growth is expected to be weaker in most countries in the group, while only Germany and the UK will contract.
The OECD expects the UK economy to contract by 0.4% in 2023, followed by a shallow growth of just 0.2% in 2024.
Earlier this month, the Bank of England predicted that the downturn could take two years.