The OECD has revised down its growth forecast for the UK this year from 0.7% to 0.4%. It anticipates further sluggishness, predicting a growth rate of just 1% in 2025, placing Britain at the bottom of the G7 growth league, with Germany closely trailing at 1.1%.

The report highlights concerns about inflation in the UK’s services sector and a shortage of skilled labour, which are expected to delay potential interest rate cuts. The Bank of England is forecasted to keep interest rates at 5.25% until autumn.

While there are glimmers of hope in the global economy, with modest growth projected, challenges persist, particularly in the Eurozone. Germany and France have seen downgrades in their growth forecasts, while the US economy is accelerating.