UK Economic Growth Forecast Downgraded to 0.7% Amid Iran Conflict Impact

The OECD has downgraded the UK's growth forecast for 2023 to 0.7%, down from a previous estimate of 1.2%. This adjustment is attributed to the ongoing conflict involving Iran, which is expected to lead to significant energy shortages and higher inflation. UK inflation is now projected to reach 4%, up from an earlier estimate of 2.5%, while global inflation across G20 countries is forecasted at 4%, increased from 2.8%. The OECD maintains its global growth forecast at 2.9% for this year.