The Organization for Economic Cooperation and Development (OECD) said the British economy is being negatively affected by the renewed inflation in energy prices due to the conflict in the Middle East, calling on the British government to accelerate the implementation of its growth agenda and overcome regional disparities.

The British news agency PA Media reported that the organization maintained its forecasts for British economic growth in a new report.

Oil prices rise as fighting escalates between the US and Iran

The organization forecasted GDP growth of 0.9% in 2026, compared to 1.4% last year.

The organization explained that the renewed inflation in energy prices due to the US-Israeli war with Iran has weakened growth forecasts this year due to its impact on households and businesses.

The organization's report noted that the conflict highlighted the British economy's vulnerability to fossil fuel price volatility, showing the need to decarbonize power generation and accelerate the transition to electricity.

Furthermore, the report concluded that regional disparities in the country negatively affect living standards and economic performance, especially given high unemployment rates and a lack of job opportunities for young people.

Advertisement

Advertisement