Shocking predictions show that the only major country projected to have lower growth than the UK in the next 12 months is Russia - which has been hit by massive sanctions over the Ukraine war. Economic growth is expected to “grind to a halt” this year before falling briefly into negative territory, and inflation will hit 10%.
The UK will grow by 3.6% in 2022 before posting zero growth in 2023, according to the Paris-based thinktank the Organisation for Economic Co-Operation and Development (OECD). The British Chambers of Commerce (BCC) also said global events continue to weigh heavily on the economy, as it downgraded its expectations for growth for 2022 to 3.5%, from a previous 3.6%.
The BCC said it now expects inflation to reach 10% in the final quarter, “comfortably outpacing” average earnings growth. Business investment is set to be hit, with 1.8% growth predicted this year, down from 3.5% in the previous forecast, said its report.
