The UK is set to weather global economic gloom as the rest of the world heads for its first recession in 20 years.

Britain is expected to ride the storm and perform well in the second half of next year, out-pacing most euro-zone countries, according to a survey by the OECD. The UK is likely to be the fastest growing G7 country next year and only faces a short-term dip in economic performance.

The OECD forecasts 1.7 per cent growth for Britain in 2002, down from 2.3 per cent in 2001 but higher than its economic rivals such as Germany, set to grow 0.7 per cent in 2001 and one per cent in 2002.