The UK's economic outlook has been downgraded over the next two years, amid the impact of US President Donald Trump's tariff plans on the global economy.
The Organisation of Economic Cooperation and Development (OECD) has published a fresh report reducing its projections for global growth, and has cut expectations for the UK from 1.4% to 1.3% this year, compared to March.
The OECD's predictions for the UK for 2026 have also fallen from 1.2% to 1%. as economists from the organisation warned the global outlook is “becoming increasingly challenging” and highlighted “heightened trade tensions, tighter financial conditions, and elevated uncertainty”.
Responding to reports the UK’s economic growth forecast has been downgraded to 1% next year by the Organisation for Economic Co-operation and Development (OECD), amid US President Donald Trump’s trade tariffs, Tom Brufatto, policy and research director at Best for Britain, which campaigns for closer UK-EU trade ties, said:
“Trump’s tariffs caused worldwide financial turmoil, and this slump in our growth forecast is yet more proof of just how exposed the UK’s economy, businesses, workers and families are to the instability emanating from the White House.
“The government must prioritise improving trade relations with our closest and largest market - the EU - which can deliver up to 2.2% growth focused in the Midlands and north of England, according to independent economic research, like no other set of policies, and our polling shows is backed by voters in every UK constituency.”