According to the Organisation for Economic Co-operation and Development (OECD), the British economy is expected to grow at a gradual pace compared with other major advanced or emerging countries. Prior the publication of the Spring Statement, the Paris-based organization revised upwards its economic outlook for Britain by 1.3% this year along with the strong global recovery. The forecast is higher than the initial estimate of 1.2% but remains to be the weakest in the Group of Twenty (G-20). The OECD projected that the most rapid growth from 2011 was led by US tax reductions and German expenditure. The think tank stated that the world economy stayed on course to boost its annual momentum to 3.9% in the next couple of years. The figure is relatively higher than the recent forecast in November 2018 of 3.7% and 3.6% in 2019. However, there are warnings that the recovery risk may subside due to the expansion of trade barriers and could further affect the growth and jobs. The OECD mentioned that increased in UK inflation would continue to squeeze the household income. Also, the sluggish business investment could affect growth for the following years until 2020 due to risks caused by the Brexit talks. The forecast for UK economic growth in 2019 was left unchanged at 1.1%, which recorded to be the slowest progress next to Japan. Economists predicted that the British economy will grow by 1.5% on an annual basis, while Chancellor Philip Hammond is expected to issue an optimistic outlook of the revised official forecasts on Tuesday. Overall, the latest projection of the OECD showed that the entire G20 countries, except for Russia, will expand at a faster pace for the current year versus the November forecast.
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