OECD Cuts UK 2027 Growth to 1% as IMF Warns on Rising Debt Costs
Updated
Updated · BBC.com · Sep 23
OECD Cuts UK 2027 Growth to 1% as IMF Warns on Rising Debt Costs
3 articles · Updated · BBC.com · Sep 23
Summary
Britain faces a weaker outlook before next month’s Budget, with the OECD trimming 2027 growth to 1% from 1.1% even as it raised this year’s forecast to 1.1% from 0.9%.
Higher oil prices linked to conflict in the Middle East and the Russia-Ukraine war are lifting fuel, energy and inflation pressures, while August’s borrowing surge has added to debt-servicing strains.
Kristalina Georgieva said the UK and US must act to curb debt as borrowing costs spiral, warning governments have let debt-service costs climb without taking sufficient action.
John Healey now faces a tighter fiscal balancing act as Labour tries to ease living costs, fund defence and stick to tax pledges and fiscal rules; debt-interest payments are forecast to reach levels last seen in the mid-1980s.
The OECD also cut global growth by 0.1 percentage point for next year, citing trade barriers, climate-related supply shocks and weaker AI returns as added risks.