UK predicted set to be among worst performing economies

The UK is set to be one of the world’s worst-performing major economies this year, according to a forecast from the International Monetary Fund (IMF).

The report says the UK economy’s performance in 2023 will be the worst among the G7, predicting that the economy will shrink by 0.3% in 2023 and then grow by 1% next year.

The IMF’s latest prediction represents a small upgrade, from a previous forecast of a 0.6% contraction.

The IMF expects global growth to fall from 3.4% in 2022 to 2.8% in 2023, before rising slowly and hitting 3% in five years’ time. Germany is the only other G7 country forecast to suffer a contraction this year, at 0.1%. The UK topped the group in 2022 during the pandemic rebound.

It also warned of a rocky road for the global financial system following the collapse of two US banks last month, closely followed by a rushed takeover of Swiss banking giant Credit Suisse by its rival UBS, which sparked fears of another financial crisis.

Chancellor Jeremy Hunt said “Our IMF growth forecasts have been upgraded by more than any other G7 country.”

“The IMF now say we are on the right track for economic growth. By sticking to the plan we will more than halve inflation this year, easing the pressure on everyone.”