Please see below article received from EPIC Investment Partners this morning, which provides an economic update for the UK.
The Organisation for Economic Co-operation and Development (OECD) has provided an updated economic outlook for the United Kingdom, projecting modest growth in the coming years. According to the latest forecasts, the UK economy is expected to expand by 0.8% in 2024, followed by a slight increase to 1.5% in 2025. While these projections indicate a gradual recovery from post-pandemic challenges and the economic impact of Brexit, they still represent relatively subdued growth compared to pre-pandemic levels. However, despite this moderate outlook, the UK’s growth is anticipated to be stronger than several of its European counterparts, including Germany, which is forecast to experience slower growth due to structural economic challenges.
The OECD attributes the UK’s tepid growth to several factors, including persistent inflationary pressures, rising interest rates, and global economic uncertainties. The organisation noted that while the UK has made progress in stabilising its economy, it faces structural challenges that could hinder more robust growth. These include a tight labour market, stagnant productivity growth, and lingering uncertainties surrounding trade relations with the European Union.
In its broader economic outlook, the OECD highlighted the importance of global fiscal discipline in sustaining economic stability and growth. The organisation emphasised that while short-term fiscal support measures were necessary during the pandemic, countries must now focus on prudent fiscal policies to manage public debt and support long-term economic resilience. According to the OECD, excessive public debt and deficits could undermine global economic stability, especially if combined with high interest rates and reduced market confidence.
For the UK, this means balancing the need for public investment to support growth and the imperative of maintaining fiscal responsibility. The OECD recommends that the UK government should prioritise investments in infrastructure, education, and innovation to boost productivity while ensuring that these investments do not lead to unsustainable fiscal positions.
Globally, the OECD pointed out that coordinated fiscal discipline among advanced economies is crucial to mitigating potential financial risks. The organisation suggested that countries should work together to avoid competitive devaluations and protectionist policies that could further destabilise the global economy. The OECD also warned that failure to adhere to sound fiscal practices could lead to increased volatility in global markets, higher borrowing costs, and reduced investment, which would be particularly detrimental for countries like the UK that are already navigating a challenging economic environment.
Separately, for those planning to indulge in a restaurant meal this weekend, be sure to read the fine print! One Florida restaurant has taken things to a new level by slapping a “crime” fee on diners who dare to share a meal. Yes, sharing is now a luxury service! The menu reads more like a legal contract, insisting that every guest order their own entrée. So, unless you want to be penalised, keep your fork to yourself!
Please check in again with us soon for further relevant content and market news.
Chloe
27/09/2024