The UK is set to enjoy the fastest growth in the G7 this year, according to the latest report from the Organisation for Economic Cooperation and Development (OECD).
It expects the UK to grow by 6.9 per cent amid a wider global rebound, however the country remains vulnerable to supply shortages, wider inflationary pressures and the potential effects of the Omicron variant on its vaccine programme.
OECD anticipates a recovery in global economic growth of 5.6 per cent this year and 4.5 per cent in 2022, before settling back to 3.2 per cent in 2023, close to the rates seen prior to the pandemic.
The report also warns that the strong pick-up in activity seen earlier this year is losing momentum in many advanced economies.
A surge in demand for goods since economies reopened, and the failure of supply to keep pace, have generated bottlenecks in production chains.
This has resulted in labour shortages, pandemic-related closures, rising energy and commodity prices. Meanwhile inflation continues to bite domestically, with the Centre for Economics and Business Research revealing that rates could rise by 4.6 per cent by Christmas.
More to follow…