IMF Predicts UK as Only Major Economy to Contract in 2023
The United Kingdom is projected to be the only major economy to contract this year, according to the latest forecast by the International Monetary Fund (IMF). The IMF estimates that the UK’s gross domestic product (GDP) will shrink by 0.6 percent in 2023, a downgrade from the 0.3 percent growth it predicted in October.
This development means the UK is the only member of the G7 group of nations facing an economic contraction in 2023. If predictions are accurate, it will also be the sole G7 country not to reach its pre-pandemic GDP levels before 2024.
The news is expected to increase pressure on Finance Minister Jeremy Hunt and his economic plans for the world’s sixth-largest economy. This anticipated decline in GDP contrasts sharply with 2022, when the UK’s economy grew by an estimated 4.1 percent—the highest growth among G7 nations, according to the IMF.
Following the IMF’s report, the pound sterling hit a one-week low against the U.S. dollar, and major UK stock indices declined in early trading. These reactions reflect investor concerns over the UK’s economic outlook.
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UK will be only major economy to shrink in 2023, according to the IMF
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