OECD raise forecast

OECD upgrades UK growth forecastThe Organisation for Economic Co-operation and Development (OECD) has upgraded its forecast for UK growth, citing the success of the coronavirus vaccination programme. The think-tank expects UK GDP will rise by 7.2% in 2021, the fastest growth since 1941, after a 9.8% contraction in 2020. In March, the OECD predicted that GDP would rise by 5.1% this year. It also raised its forecast for global growth to 5.8%, having previously predicted growth of 4.2% in December. The report says global growth will be led by the US, where GDP is forecast to reach 6.9% this year, before easing to 3.6% in 2022. The OECD has warned that the UK could suffer more longer-term economic damage than other G7 nations, with the impact of Brexit adding to disruption brought about by the pandemic. It points to a potential fall in economic output and warns that “increased border costs following the exit from the EU single market will continue to weigh on foreign trade”.