PwC comments on the May 2024 OECD Economic Outlook

Barret Kupelian, Chief Economist at PwC UK, comments on the latest OECD Economic Outlook:

“The OECD expects UK economic activity to grow by 0.4% this year and 1% next year. However, the OECD’s forecasts show the UK is stuck in the ‘slow growth’ lane, when compared to other large European economies. This is also supported by our own in house forecasts. 

“In the short-term, we expect economic activity to pick up, mainly led by private sector activity and consumer spending. Some of this will be helped by the Bank of England likely gradually easing its monetary policy in the second half of the year. The report suggests there is momentum to the UK’s economic turnaround in key economic areas, including house purchase activity and a rise in both consumer and business confidence.  

“Long term, the UK will need to build a comprehensive industrial and services plan which addresses its main economic shortcomings, i.e. planning rules, skills reform, and issues surrounding the provision of public services.  Building a framework to address these areas whilst also dealing with the green and digital transitions will be key to grow private and public sector productivity and resilience.”