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Watch: Jeremy Hunt grilled by Treasury committee as Britain to suffer highest inflation in G7

Holly Patrick
Wednesday 29 November 2023 14:21 GMT
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Watch as Jeremy Hunt is questioned by the Treasury Committee on Wednesday, 29 November, after a major international forecast showed that Britain is set to suffer the highest inflation and the second-slowest growth rate in the G7.

According to the Organisation for Economic Co-operation and Development (OECD), Britain is forecast to have the slowest gross domestic product (GDP) this year and next year, other than Germany, in the forum.

Economists in the organisation also said that growth across the global economy has been stronger than expected but is beginning to slow as higher interest rates, weaker trade and lower business and consumer confidence take a toll.

The economic blow comes after the head of the Bank of England (BoE) expressed concern over the growth outlook for the UK economy.

Andrew Bailey said: "If you look at what I call the potential growth rates of the economy, there's no doubt it's lower than it has been in much of my working life."

In response, Rishi Sunak's official spokesperson said: "We do believe that we have turned a corner, particularly given the success in halving inflation.

“And you saw an autumn statement which was designed to boost the UK economy with new policies like full expensing, which was long called-for by businesses, and we are confident that as a result we will keep outperforming expectations.”

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