While the impact of the war in Iran is sparing no major global economy, the U.K. is predicted to bear the greatest economic hit of any developed market nation, according to the Organisation for Economic Co-operation and Development (OECD).
In its latest economic report revising growth and inflation forecasts made in December, the OECD made steep revisions to the U.K.’s outlook.
It now predicts U.K. inflation to hit 4% this year — up 1.5 percentage points (pp) from its previous forecast — and for 2026 growth to languish at 0.5%, down 0.5pp from its last review.
The revisions were the steepest of any made by the Paris-based OECD regarding major global economies in its interim economic outlook published Thursday.
Out of the G7 group of industrialized economies, only the U.S. was predicted to see higher inflation this year, with the OECD predicting the rate to hit 4.2%.
