The UK is forecast to record the weakest economic growth across the G7 group of advanced economies next year, according to the International Monetary Fund (IMF), which also predicted Bank of England rates remain close to 5% until 2028.
In its latest economic outlook, the finance body said the global economy is "limping along" amid pressure from persistent inflation and higher borrowing costs.
The IMF, in a new assessment of the UK economy, marginally upgraded its growth prediction for UK gross domestic product (GDP) this year to 0.5% from 0.4%.
It would be the second-weakest performance across the G7, behind Germany, according to the United Nations' financial agency.
The Washington-based fund however downgraded its forecasts for the UK's economic growth next year.
It had previously pointed towards 1% growth for 2024 but on Tuesday reduced this prediction to 0.6% amid pressure from higher interest rates.
This would represent the worst growth rate across all of the G7, while Canada is expected to have the strongest growth, at 1.6%.
Global GDP is expected to rise by 3% this year and 2.9% next year, according to the latest forecast.
The IMF also predicted that the UK would see consumer price index (CPI) inflation of 7.7% for the current year, with this set to slow more sharply to 3.7% next year.
It believes Bank of England rates, currently 5.25%, will peak at 6% and stay around 5% until 2028.