UK will be only G7 economy to shrink in 2023
January 31, 2023 - The International Monetary Fund says the UK will be the only one of the advanced and emerging economies to shrink in 2023.
The International Monetary Fund (IMF) says the UK economy will contract by 0.6% in 2023, rather than grow slightly, like many other major economies are doing. However, it adds that the UK economy is now “on the right track”.
In its World Economic Outlook update, the IMF predicts the UK will be the only country out of the world’s advanced and emerging economies to suffer a year of declining GDP – estimated at a fall of 0.3%.
The IMF report reflects UK problems caused by high inflation, high energy prices and a high dependence on liquid natural gas.
Even Russia, which is being targeted by over 13,000 sanctions, will see economic growth in 2023.
The IMF did not mention Brexit in its report as a factor in the UK’s economic demise, although it cannot be ignored that the UK is also suffering from post-Brexit labour shortages.
January 31, 2023 marks three years since the UK left the European Union.