Britain's economy will grow by 1.5 per cent this year, the OECD forecast Wednesday after downgrading its previous estimate for GDP expansion of 1.7 per cent due to "significant headwinds" seen in 2011.

In a report, the Organisation for Economic Cooperation and Development said Britain's recovery that began in late 2009 "faces significant headwinds during 2011, which can be mitigated by monetary policy remaining supportive."

The Paris-based policy and research body for the governments of 34 leading economies added that Britain's "recovery is likely to remain subdued in 2011, as the necessary fiscal tightening and a fading rebound in world trade create headwinds, before picking up again in 2012."