UK rivals to do better in 2023

BRITAIN faces a larger fall in the size of its economy than any of its major rivals next year, a global watchdog warned yesterday.

The UK’s output will fall by 0.4 per cent next year, the Organisation for Economic Co-operation and Development (OECD) said, piling pressure on Rishi Sunak to boost growth. While the world will struggle through a ‘significant growth slowdown’, it will avoid a recession, the OECD said. But Britain will suffer high inflation, which weighs on spending and investment, for at least another year.

The cost of living crunch will not ease until the end of 2023, by which time inflation will fall back from its current 41-year high of 11.1 per cent to 4.5 per cent.

Mathias Cormann, secretarygeneral of the OECD, said: ‘A just peace for Ukraine would be the most impactful way to improve the global economic outlook.’