The UK economy will contract in 2023 and lag behind the major G7 countries, the International Monetary Fund warned on April 11.
Highlighting the growing risks of a hard landing for developed countries, the Washington-based organization singled out the UK and the euro zone as the hardest hit by rising energy prices and inflation.
The IMF slightly revised its estimate for UK growth this year from -0.6% three months ago, but still expected the economy to contract by 0.3%.
According to the IMF’s World Economic Outlook (WEO), the UK, along with Germany, is one of two G7 countries projected to contract in 2023.
“We continue to see a recession in 2023 amid a fairly strong shock from rising energy prices, monetary tightening, and some tightening in financial conditions.said economic adviser Pierre-Olivier Gurinshas. — Our overall assessment is that this will be a challenging year for the UK, but growth will pick up in 2024.” Further easing if last month’s troubles that hit regional US banks such as the Bank of Collapsing Silicon Valley and the recently bailed-out Swiss Credit Suisse turn out to be symptoms of a broader malaise.”
Source: Rossa Primavera
I am Michael Melvin, an experienced news writer with a passion for uncovering stories and bringing them to the public. I have been working in the news industry for over five years now, and my work has been published on multiple websites. As an author at 24 News Reporters, I cover world section of current events stories that are both informative and captivating to read.