Chart of the Day 2 June 2021 UK forecast to suffer the worst economic scarring of any G7 country Joe Biden’s stimulus plan means the US economy is predicted to be larger than expected before Covid-19, while Britain suffers long-term damage. Matt Cardy/Getty Images Clouds gather over high-rise buildings in Canary Wharf. Sign UpGet the New Statesman's Morning Call email. Sign-up The dual impact of Covid-19 and Brexit means that the UK faces deeper economic scarring than any other country, according to forecasts from the Organisation for Economic Co-operation and Development (OECD). In its latest economic outlook, the OECD suggests that overall global growth will continue to accelerate as Covid-19 vaccines are rolled out and fiscal stimulus programmes are introduced. But although the UK’s GDP is forecast to rise by 7.2 per cent in 2021 – higher than most G20 countries – the OECD also predicts that the UK will suffer the deepest economic scarring, or long-term damage, of any G7 country. UK forecast to suffer deepest economic scarring of any G7 country Difference between pre-pandemic and current consensus projections of GDP in 2025 The OECD measures losses in potential output due to Covid by comparing pre-pandemic projections for national income levels with forecasts for 2025. The UK could suffer the largest reduction in potential growth output of any G7 country, something partially attributable to Brexit-related disruption. By contrast, the US is the only economy forecast to be larger than expected before Covid-19, owing to the $1.9trn stimulus programme introduced by the Biden administration. › Labour, not the Conservatives, was the largest party among low-income workers in 2019 Polly Bindman is a New Statesman Media Group data journalist. Subscribe To stay on top of global affairs and enjoy even more international coverage subscribe for just £1 per month!