UK economy is pulling away, says OECD

A global leading think-tank has said that Britain’s economy is pulling away from the rest of the developed world, based on the strength of its recovery from the global recession.

Since May The Organisation for Economic Co-operation and Development (OECD) has downgraded growth for the G7 group of leading nations, but has cut the UK’s projection by less than other countries.

The news comes after it was already recently revealed that Britain’s economy was on track to grow at the fastest rate this year and the second-fastest rate next year, after the United States.

Growth for the UK was cut from 3.2 per cent this year to 3.1 per cent, but importantly raised next year from 2.7 per cent to 2.8 per cent, according to OECD’s latest forecast.

In comparison the US was downgraded by 0.5 per cent this year and by 0.4 per cent for next year, while Germany saw growth forecast cut back by 0.4 per cent and 0.6 per cent and France was lowered by 0.5 per cent across both years.

Italy was also substantially downgraded by 0.9 per cent and 1 per cent, respectively.

The think-tank reserved its biggest concerns for the Eurozone, where growth was slashed from 1.2 per cent to 0.8 per cent for this year and from 1.7 per cent to 1.1 per cent for next year, leading to calls for the ECB to take aggressive action.

The OECD said that UK employment growth was “now solid” and that growth was expected to “continue at a healthy pace through 2015.

It would appear therefore that the UK could be on the path to beating its economic rivals in the coming years, but as with all forecasts a lot can change and the true effects of the Scottish referendum are yet to be felt.

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