The UK economy will be the only one of all the major economies to contract this year: even Russia will do better | Economy

According to the International Monetary Fund, the UK’s gross national product will fall by 0.6 percent in 2023. The other six members of the G7 – the richest industrialized countries; Canada, Germany, France, Italy, Japan and the United States are seeing an increase in their GDP.

The International Monetary Fund previously expected the British economy to grow by 0.3 percent in 2023. The bright spot is that effective growth is still expected for 2024: 0.9 percent.

Most other countries saw their 2023 forecasts revised in a positive direction. This has been the case for Germany and Italy, among others, which are now expected to grow at greater rates than the UK.

Strikingly: Even Russia will do better, according to the International Monetary Fund, with growth of 0.3%. Despite Western sanctions imposed after the invasion of Ukraine.

According to the International Monetary Fund, Britain’s distress is due to the government imposing tight restrictions on its spending and the effects of rising energy prices.

look. Kristalina Georgieva, CEO of the International Monetary Fund, doesn’t stress about it: 2023 will be more difficult than 2022 for most of the world’s economies.

The British depend heavily on gas, and its prices have risen significantly since the Russian invasion of Ukraine. Employment has not yet reached the same levels as before the pandemic, and rising interest rates have made mortgage payments more expensive.

Commenting on the new forecasts, Chancellor of the Exchequer Jeremy Hunt admitted that Britons “are not immune to the pressures facing almost all advanced economies.” He stresses that the long-term outlook looks much better. He told Sky News: “We performed better last year than many forecasts had predicted, and if we stick to our plan to halve inflation, the UK will grow faster than Germany and Japan in the coming years.”