The UK economy will remain “sluggish” due to the impact of interest rate rises, the OECD says.

The UK economy will see the slowest growth of the largest developed nations next year, according to forecasts.

The Organisation for Economic Co-operation and Development (OECD) predicted that UK gross domestic product - a key measure of economic health - will rise by 1% in 2025.

This is below the rest of the G7 nations, which include Canada, France, Germany, Italy, Japan and the US.

The OECD, which is a globally recognised think tank, said the UK economy would be “sluggish” this year.

The organisation blamed the after-effects of a succession of interest rate rises in the UK for the lethargic performance.