UK - Slowest Growth Forecast

Arno Froese

The UK economy will see the slowest growth of the largest developed nations next year, according to forecasts. 

The Organisation for Economic Co-operation and Development (OECD) predicted that UK gross domestic product—a key measure of economic health—will rise by 1% in 2025.

This is below the rest of the G7 nations, which include Canada, France, Germany, Italy, Japan and the US.

It also warned that some elements of inflation remained high and that uncertainty over when the Bank of England might change interest rates might put people off investing.

The government has cut National Insurance twice since last year, totalling a 4% reduction. But the OECD said this “only partially offsets the ongoing fiscal drag from frozen personal income tax thresholds.”

Fiscal drag means that as a person’s salary rises, they can move into a higher income tax bracket.

Meanwhile, the Liberal Democrats accused the government of being “economically illiterate.”

“Their no-growth policies have left the public enduring sky-high mortgage rates, the price of a weekly shop going through the roof, and stealth taxes hammering both pensioners and working people,” said Liberal Democrat Treasury spokesperson, Sarah Olney.

The Bank of England, which is independent from the government, sets interest rates and has a target to keep inflation at or close to 2%. 

-www.bbc.com, 3 May 2024

Arno's Commentary

From the seven listed major industrialized nations, the US tops the list with 2.7% growth for 2024 and 1.9% for 2025. One reason not mentioned in the article is the singular word Brexit, which has and will continue to reveal itself as a brake on their economy due to the fact that the UK must now deal with 27 European states independently. The unpleasant prediction of the OECD is that the present growth of 0.4% will barely reach 1% for 2025. 

Regardless of the various prognoses, the world economy will continue to grow year after year. Merchandise will be available in increased volumes at even higher quality. VisualCapitalist.com reports that nations outside Europe and North America will see an estimated growth almost double the present world average of 2.9%.

We point to the first gentile superpower, Babylon, and note that before judgment came, unbridled self-glorification was the beginning: “The king spake, and said, Is not this great Babylon, that I have built for the house of the kingdom by the might of my power, and for the honour of my majesty?” (Daniel 4:30).

Arno Froese is the executive director of Midnight Call Ministries and editor-in-chief of the acclaimed prophetic magazines Midnight Call and News From Israel. He has authored a number of well-received books, and has sponsored many prophecy conferences in the U.S., Canada, and Israel. His extensive travels have contributed to his keen insight into Bible prophecy, as he sees it from an international perspective.

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