Are you worried about the future of the UK economy? According to the latest forecasts from the Organisation for Economic Cooperation and Development (OECD), the UK is expected to be the worst-performing economy among advanced nations next year. The country’s GDP is projected to grow by 0.4% in 2024, down from a previous estimate of 0.7%.
But it’s not all bad news. The global economy is showing signs of recovery, with growth expected to remain steady at 3.1% in 2024 and rise to 3.2% in 2025. North America is leading the way in growth among advanced nations, with the US forecasted to have strong growth of 2.6% in 2024.
In Europe, growth is expected to pick up after a sluggish 2024, and even in emerging economies like China, there are signs of strength. The OECD revised its growth projections for China slightly upward, citing a stronger performance than in the recent past.
The OECD also noted that central banks’ efforts to quell inflation seem to be working, with headline inflation expected to dip to 5% in 2024 from 6.9% in 2023, and further decrease to 3.4% in 2025. By the end of 2025, inflation is predicted to return to around 2% in most major economies.
While the global economic outlook seems positive, there are still uncertainties about how robust the recovery will be, especially as central banks differ on the future path of interest rates. As Alvaro Pereira, director of the OECD’s policy studies branch, pointed out, if inflation remains stickier than expected, monetary policy may need to remain restrictive for a longer period.
At Extreme Investor Network, we keep a close eye on economic trends and provide unique insights to help you navigate the ever-changing financial landscape. Stay tuned for more expert analysis and investment opportunities to make informed decisions for your financial future.
