UK economic growth ‘robust’, OECD thank tank says

She is facing the twin challenge of managing expectations ahead of the Budget next month by explaining how tough times lie ahead, while attempting to paint a positive picture to encourage investment.

“Next month’s Budget will be about fixing the foundations, so we can deliver on the promise of change and rebuild Britain,” Reeves said.

The OECD, which is a globally recognised think tank, said that economic growth had been “relatively robust” in many countries, including the UK.

But it added: “Significant risks remain. Persisting geopolitical and trade tensions could increasingly damage investment and raise import prices.”

While the OECD’s prediction for the UK has improved for this year, it is only set to enjoy joint-fourth fastest growth in 2025, at 1.2%, ahead of only Germany and Italy.

The UK is also still projected to see consumer prices rise at a faster rate than other G7 nations.

It is set to rise by 2.7% this year and 2.4% next year, the OECD forecast.

The OECD’s economic estimates, which are released twice yearly, aim to give a guide to what is most likely to happen in the future, but they can be incorrect and do change.

They are used by businesses to help plan investments, and by governments to guide policy decisions.