OECD: UK ahead of global pack in growth stakes

Although the rate of recovery is nothing to write home about, organisation warns

The UK is bucking the global growth trend according to the latest figures from the Organisation for Economic Co-operation and Development (OECD).

According to its figures, the UK economy will grow by 1.4 per cent this year and 2.4 per cent next year and is the biggest upgrade for any of the global economies. The UK is projected to strengthen further in 2014 and 2015, mainly due to an upturn in gross fixed investment and exports. Inflation is also projected to fall gradually in the next two years.

In comparison, growth in the US is projected at a 2.9 per cent rate for next year and 3.4 per cent in 2015. In Japan it is expected to fall to a 1.5 per cent growth rate in 2014 and a one per cent rate in 2015.

The euro zone is going to witness a gradual recovery with growth of one per cent in 2014 and 1.6 per cent in 2015.

And developing economies such as Chile, Turkey, Mexico, Korea and Israel will continue to out-pace growth in other advanced economies, the OECD said.

On the more negative side, the recovery is still classed as ‘weak' and points to a ‘worrisome' slowdown in world trade growth, in foreign direct investment flows and in fixed investment, as well as continuation of ‘stubbornly high' unemployment, particularly in Europe, which is only expected to fall below 12 per cent by the end of 2015.

Angel Gurria, secretary-general of the OECD, said: "The recovery is real, but at a slow speed, and there may be turbulence on the horizon."

Pier Carlo Padoan, chief economist at the OECD, added: "Growth since the global crisis has been uneven and hesitant, while job creation has been even more disappointing. Clear and credible strategies are needed for how jobs and growth will be created and public finances restored. This will require a strong commitment to structural reforms in advanced and emerging markets alike."