Economic Cooperation Organization Britain and Russia are vulnerable to recession

Britain and Russia are at risk of recession according to the Organization for Economic Co-operation and Development (OECD).

The Paris-based institution predicts that the UK and Russia will be the only two major economies likely to contract this year. Despite the UK receiving the biggest upgrade in growth forecast shared by the Group of Seven countries, it will still have one of the worst performing economies in the world.

The OECD predicted a 0.2% decline in UK GDP this year, followed by a weak recovery of 0.9% in 2024.

These numbers are slightly higher than November projections.

The forecast highlights the pessimistic view of the UK’s economic outlook as it struggles with double-digit inflation and credibility gap after last year’s failed fiscal plans.

These challenges remain despite the introduction of a “growth budget” by Treasury Secretary Jeremy Hunt aimed at encouraging business investment and improving labor supply.

Uncertainty about the UK’s trade relations and hundreds of thousands of people leaving the labor market during the start of the pandemic continue to pose particular challenges for the economy.

However, the UK’s Office for Budget Responsibility predicts a contraction of 0.2% this year and a much faster recovery of 1.8% in GDP in 2024.