Britain's economy the only G7 country to shrink in 2023 - IMF

The UK economy will stagnate and perform poorly compared to other advanced economies as the cost of living continues to rise in households.

[{"selector":"#anim-4520ec21-fbe3-483f-93f3-ae77fc88ad5b [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-12.499999772451451%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-5bd52f95-d487-49ea-82ef-0be498e5aac1","keyframes":[{"offset":0,"transform":"translate3d(0, -447.57204%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.29,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.45,"transform":"translate3d(0, -125.857257648%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.61,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.71,"transform":"translate3d(0, -42.78788702400001%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.8,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.85,"transform":"translate3d(0, -16.067836236%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.92,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.96,"transform":"translate3d(0, -6.982123824%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":1,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"}],"delay":0,"duration":600,"fill":"both"}] credit-google

[{"selector":"#anim-c3b10f67-a3e5-48aa-ae08-ab876a8a3c0a [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(7.986110856172463%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-41fdab9d-a266-4807-9d1c-916c95e6efcf","keyframes":{"transform":["translate3d(-136.46616%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-bf08654d-c2c5-499e-a991-809dff5bbd09","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0e8d8f48-aeb0-4450-8d2b-e4d82e8d1c92","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] The IMF says the economy will contract by 0.6% in 2023, instead of growing slightly as previously predicted. credit-google

[{"selector":"#anim-d6478b96-ae4a-4bfc-a876-4db5d5224680 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-7.891948897032357%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-70f3cd1b-e22b-4936-9265-5eb5c74bfa3b","keyframes":[{"offset":0,"transform":"translate3d(0, -348.87485%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.29,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.45,"transform":"translate3d(0, -98.10360782%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.61,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.71,"transform":"translate3d(0, -33.35243566%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.8,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.85,"transform":"translate3d(0, -12.524607115%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.92,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.96,"transform":"translate3d(0, -5.442447659999999%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":1,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"}],"delay":0,"duration":600,"fill":"both"}] In its World Economic Outlook update, the IMF, which works to stabilize economic growth, forecast UK gross domestic product (GDP) will shrink rather than grow by 0.3% this year. credit-google

Britain will be the only country among the world's advanced and emerging economies to suffer a year of GDP decline.

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[{"selector":"#anim-f775e7c6-e030-448d-9db7-3691a35f3511 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(14.843749786673241%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-f5974ed1-c68c-4a1d-be95-5929d8a95731","keyframes":{"transform":["translate3d(-140.22556%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d4964957-84d6-4d10-94a2-0378ec15092c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1ef1b787-c470-41d4-a38e-71476ff7fd7c","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] The IMF said its new forecast reflects UK financial conditions such as high energy prices and high inflation. credit-google

[{"selector":"#anim-f3a565a8-0f97-4718-a58e-f5f00fc8c5fb","keyframes":{"transform":["translate3d(118.42105%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-994146df-8500-417b-8bc6-9ad22fff4ff8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b140ac49-ba35-4116-b61c-5829d8a2a6f7","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] IMF chief economist Pierre-Olivier Gaurinchas told the BBC that for 2022, the UK was set for "quite strong" growth of 4.1%, which he said was "one of the strongest growth numbers in Europe". credit-google

[{"selector":"#anim-a4ad8db4-bab2-4529-8f2d-4e4dc92eac16 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-16.085609705263433%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-6b2bb725-7a1b-4af1-a2ae-5a334f6ce26c","keyframes":[{"offset":0,"transform":"translate3d(0, -377.61065%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.29,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.45,"transform":"translate3d(0, -106.18411478%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.61,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.71,"transform":"translate3d(0, -36.099578140000006%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.8,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.85,"transform":"translate3d(0, -13.556222335000001%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.92,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.96,"transform":"translate3d(0, -5.89072614%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":1,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"}],"delay":0,"duration":600,"fill":"both"}] "But it is true that we are predicting a sharp recession in 2023, with growth that will also turn negative for the year." credit-google

[{"selector":"#anim-bc079de2-3f53-462a-a3c5-26393902b106 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.91292737803441%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-3d00ac42-53f0-435f-b5dc-d05407c3272f","keyframes":{"transform":["translate3d(-120%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-44e7380b-07fa-43d4-9108-40e8f1bb20fc","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ad722672-8790-424a-b521-a9d96dca959c","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Monetary policy has been tightened by the Bank of England as a response to this high inflation and in the UK it quickly feeds into mortgages, as a lot of mortgages are adjustable rates," he said. credit-google

[{"selector":"#anim-a1b71c83-5486-4b71-9933-2de96bb7af66 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(7.816019769060537%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-7d19b5cc-9301-40eb-a4a8-5e71cca7226b","keyframes":{"transform":["translate3d(117.81819%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-01523e7d-4d74-45f5-a058-d9d7cb92a936","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-84a7ba0b-12f6-4479-a923-6873ab9cec5e","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Mr Gourinchas also said a factor in the UK forecast was that employment was still below pre-pandemic levels. credit-google

However, the IMF said that UK growth is expected to be 0.9% in 2024, up from 0.6% previously.

[{"selector":"#anim-a789f7d7-b072-499c-aef8-a062d4a43ec4 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-1ee71c4d-34d8-46e9-9d7a-7100d6a95832","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-1fc01f51-4af1-4062-be96-68d8e756ea82","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] credit-google

[{"selector":"#anim-30d1ea3b-fb4a-43bd-9f38-120ca8f5e312 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.251603546858103%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-936e547b-a8e5-4ae4-b062-aabe0633efd9","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5ab4f656-bbc0-4b34-8c33-feaaf6304a7f","keyframes":{"transform":["translate3d(0px, 342.80199%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The Bank of England will publish its new forecast for the UK economy later this week, with interest rates expected to rise further. credit-google