FAST FIVE: UK Faces Worst Economic Downturn Among G-7 Nations: OECD

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The OECD expects the UK economy to shrink by 0.4 percent in 2023 and grow by just 0.2 percent in 2024.

17, he announced that the energy price guarantee will continue for a further 12 months from April, but will rise from the current £2,500 to £3,000 ($3,560) per year for the average household.

It said: “The untargeted Energy Price Guarantee announced in September 2022 by the government will increase pressure on already high inflation in the short term, requiring monetary policy to tighten more and raising debt service costs.

(Frank Augstein, File/AP Photo) Risks 'Considerable' The OECD said UK inflation-which hit a 41-year high of 11.1 percent in October-will likely peak at the end of this year and remain above 9 percent into early 2023, before slowing to 4.5 percent by next year-end and to 2.7 percent by the end of 2024.

“The squeeze on real incomes, rise in interest rates, and fall in house prices all weigh on consumption and investment, tipping the economy into a recession lasting just over a year from the third quarter of 2022, with a peak-to-trough fall in GDP of two percent.” The OBR also predicted unemployment would rise to 4.9 percent in the third quarter of 2024.

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