OECD predicts 0.9% growth for UK in 2013

The Organisation for Economic Co-operation and Development (OECD) has predicted real GDP growth of 0.9 per cent during 2013, after contracting by 0.1 per cent in 2012.

The OECD expects the UK to see growth of 1.6 per cent by 2014.

The US is forecast to grow by 2.2 per cent this year, by 2 per cent in 2013 and 2.8 per cent in 2014.

Germany is set to see growth slow in 2013, according to the OECD, to 0.6 per cent from 0.9 per cent in 2012, before rising to 1.9 per cent in 2014.

France is forecast to grow by 0.2 per cent this year, rising to 0.3 per cent in 2013 and 1.3 per cent in 2014.

The eurozone as a whole is to contract by 0.4 per cent in 2012 and by 0.1 per cent in 2013, before returning to growth of 1.3 per cent in 2014.

Although China will see growth slow in 2012 to 7.5 per cent, it is forecast to increase to 8.5 per cent in 2013 and 8.9 per cent in 2014.

Total OECD growth is to remain at 1.4 per cent in 2012 and 2013, before rising to 2.3 per cent in 2014.

OECD Secretary-General Angel Gurría says: “The world economy is far from being out of the woods. The US ‘fiscal cliff’, if it materialises, could tip an already weak economy into recession, while failure to solve the euro area crisis could lead to a major financial shock and global downturn.

He adds: “Governments must act decisively, using all the tools at their disposal to turn confidence around and boost growth and jobs, in the United States, in Europe, and elsewhere.”