The UK will descend to growth of 1% next year as a trump tariff, says OECD | Oecd star-news.press/wp

The economic growth of Great Britain will be slower than expected this year and the next as the damage issued by the Tariff, Donald Trump affects trade and investment, towards the gloomy forecast for economic cooperation and development (OECD).

The international body reduced expectations for this year and in addition to the forecast adopted in March, pushing growth in the UK from 1.4% to 1.3% in 2025. And from 1.2% to 1% next year. Limitations on Whitehall consumption and greater than expected inflation have also played a part in reduction, said OECD.

Almost all countries, including the UK, have suffered upgrades in the latest growth forecasts by Paris, which said it was mostly responding to the uncertainties that created American tariffs in appearance for the global economy.

The OECD predicted that global growth would make it easier for 3.3% in 2024. at 3.1% in 2025. and 3% next year, but now expects a “modest” growth of 2.9% this year and next.

Now, Mexican and Canadian economies are likely to be the most difficult affected by liquid tariff battles, the OECD said.

Forecast for the US in March, the growth was expected to reach 2.2% of this year and 1.6% in 2026, but these estimates decreased to 1.6%, and 1.5% in the latest prospects.

The OECD Judgment is likely to disappoint British Chancellor, Rachel Reeves, facing difficult issues next month on their record when it announces government priorities in the summer.

Government consumption is limited by growing health costs, pensions and defense, while the economy remains standing, limiting the increase in tax receipts.

The chancellor will base their forecast plans by the Budget Office, which in March – a few weeks ago, the import tariffs began to accelerate the economy, but strongly recovers to accelerate that they will accelerate next year.

Álvaro Pereira, the main economist of the OECD, said that he was careful about the ability of Great Britain to withstand the uncertainty created by the global tariff war, which of the prognosis was not able to consider.

“We hope that we have seen the worst tariffs and there will be more trading agreements, which we bring security to international trade. Our top priority must be for maintenance market maintenance,” he added.

Pereira said that his forecasts were based on the main American tariffs that remained in the place for the next two years – 25% tariffs for import steel, aluminum and cars and 10% of the covering on all goods.

“In the past few months, we saw a significant increase in trade barriers as well as in the uncertainty of economic and trade policy. This sudden increase in uncertainty has negatively affected the business and trust of consumers and keeping retail and investing,” he said.

“The weakened economic prospects will be felt around the world, with almost no exception. The lower growth and smaller trafficking will strike revenue and slow job growth,” he added.

Inflation is likely to remain “sticky” in the UK compared to the next year, a limiting pace of the rate of interest rates by the Bank of England, despite slowing down slowdown.

“Although we still predict that inflation will lower the goals of the Central Bank by 2026. in most countries, now it will last to get these goals. In the countries they are more affected by tariffs, before it fell before.” He said.

The OECD forecasts for all its 38 members before the annual meetings in Paris this week.

His report on the UK was determined that after the first three months of the year – for which the gross domestic product (GDP) increased by 0.7%, before adding that “consumer confidence remains depressed from the second half of 2024, while the volumes are sales for the population.”

He called on the UK Government to restrict everyday consumption to ensure the financial room for maintaining higher levels of public investment.

However, a limited government’s budget space meant only small shocks can blow plans to buy and force the vault to make a further decrease.

Reeves said in response to the report that Government trade agreements “with the EU” now and India help reduce the costs for companies, protect the business and attract investment in the UK.

She said, “Great Britain was the fastest growing economy in G7 first three months of this year, and interest rates have been reduced four times, but we know there is more.”