The OECD now expects the economy to grow more slowly this year than it forecast three months ago, before accelerating rapidly next year and slowing again in 2026.
It expects 0.9% growth this year, down from 1.1%
It predicts 1.7% next year, up from 1.2%
In 2026 it expects 1.3% growth
Reeves said the upgrade in the growth forecast “will mean the UK is the fastest growing European economy in the G7 over the next three years”.
She said Labour had not taxed people’s payslips at the Budget and that the government is “determined to deliver growth”.
In October, Reeves set out plans to increase public spending by nearly £70bn per year, funded through tax rises and more borrowing.
On Wednesday, the OECD said that UK interest rates, which currently stand at 4.75%, are expected to fall back to 3.5% by early 2026.
It said that this was partly due to higher than expected inflation.
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