UK Economy to Grow Less Than Expected Next Year, OECD Says

The UK economy is expected to grow more slowly than previously forecast next year, according to the Organisation for Economic Co-operation and Development (OECD), which pointed to higher energy prices as a key risk, the BBC has reported.

The OECD flagged that energy costs could rise due to the conflict in the Middle East as well as the broader effects of climate change, both of which have the potential to disrupt energy markets and push up prices for households and businesses. Higher energy costs tend to squeeze household budgets and increase costs for energy-intensive industries, which can in turn dampen overall economic growth.

The OECD, a Paris-based intergovernmental organisation made up mostly of high-income member countries, regularly publishes economic outlooks and growth forecasts for its members, including the UK, based on assessments of global and domestic economic conditions.

The UK economy has faced a series of headwinds in recent years, including elevated inflation, higher interest rates, and broader global economic uncertainty. Government policy on energy security and the pace of the transition to renewable energy sources have also remained points of debate in the UK, particularly around how quickly the country can reduce its reliance on imported fossil fuels vulnerable to global price shocks.

Further details of the OECD's specific revised growth figures for the UK were not immediately available.