OECD cuts UK growth forecast


The OECD (Organisation for Economic Co-operation and Development) has reduced their forecast for the United Kingdom’s projected growth.

The OECD feels that Britain’s economy is in line for some lean times, due to a variety of reasons including a dwindling property market, fiscal consolidation and falling global demand.

They have now put down its projection for economic growth from November’s 1.7 percent to 1.5 percent.

In an official report the OECD said: “The planned fiscal consolidation is needed to ensure that the fiscal position will be sustainable over time. Nonetheless, it adds to the headwinds from weak real income growth, and a fading rebound in global trade.”

The United Kingdom is currently in the throes of austerity, and there are uncertain times ahead. Worryingly the OECD has also increased its projection for inflation, another factor that is affecting the economic situation in England.

The OECD has also commented on the UK tax system, which they feel is an area that could use improvement. They suggested that changes should be made to pensions and welfare.