The UK economy has grown faster than expected this year, the OECD said, as it lifted its 2026 forecast even while trimming its outlook for 2027.
The Paris-based think tank raised its growth estimate for this year to 1.1%, from 0.9%, pointing to solid demand in the second quarter that held up despite higher fuel prices.
It described growth as resilient in many countries, even with the disruption to Middle East oil and gas supplies caused by the long Iran war.
For 2027, however, the forecaster nudged its projection down to 1%, from 1.1%, blaming the drag from higher interest rates over the coming year.
The outlook offers a mixed backdrop for Chancellor John Healey ahead of his Budget.
On inflation, the OECD was more upbeat than the Bank of England, forecasting an average of 3.1% this year, below its earlier 3.6% call, easing to 2.6% in 2027.
The Bank has warned that inflation could peak above 4% in the coming months.
The revised growth figure brings the OECD into line with more cautious forecasters such as HSBC, while Deutsche Bank sees 2027 growth as high as 1.4%.
