The British Empire has fallen!

The IMF predicts that the UK's annual GDP will shrink by 0.6%, and it will be the only G7 country in recession this year (AFP file photo)

[Financial Channel/Comprehensive Report] Although the International Monetary Fund (IMF) has recently raised its global economic growth forecast, the UK has ushered in a not optimistic forecast report. The IMF predicts that the UK will fall into recession in 2023. Not only is it the first recession since the financial crisis in 2009 (excluding the period of the new crown epidemic), it has also become the only member of the Group of Seven (G7) countries that will experience economic contraction this year, and the annual contraction rate is expected to be 0.6%.

The IMF has significantly lowered its forecast for the UK’s economic outlook this year by 0.9 percentage points from its forecast in October last year. The main considerations are that the Bank of England’s interest rate hikes, government tax increases and fiscal spending restrictions will exacerbate the cost of living crisis for the British people.

Please read on...

According to foreign media reports, the IMF also predicts that in 2024, the British economy will rebound slowly, with a growth rate of only 0.9%, which is the same as that of Japan and Italy, which are the lowest in the G7.

This means that in the two years leading up to the UK's next general election, the British economy will effectively stagnate, growing by only 0.3%, which is obviously bad news for the current British Prime Minister Sunak.

British Chancellor of the Exchequer Jeremy Hunt was not entirely convinced by the IMF's forecast and said the British economy was likely to perform better than the IMF's forecast.

Hunt issued a statement saying that the governor of the Bank of England recently said that the UK's recession this year may be milder than previously expected.

Almost all advanced economies are under stress, and we are not immune.

But such short-term challenges should not overshadow our long-term prospects.

Grasp the pulse of the economy with one hand I subscribe to Free Finance Youtube channel

Already added friends, thank you

Welcome to 【Free Finance】

feel good

Already liked it, thank you.

related news