The International Monetary Fund (IMF) recently predicted that the UK would be the only economy to shrink in 2023. According to the economic forecast report published by the IMF on Monday, the UK can experience a significant decline in its economy and perform worse than Russia. Experts also forecasted that the economy is expected to decline by 0.6 percent rather than grow. So, it is clear that this IMF forecast clearly shows that the shrink in the UK’s economy will hit households and businesses soon.
One of the reasons the IMF gave behind this forecast is the higher energy cost, increasing taxes, and shortage of workers. The increasing living costs and unemployment is another prominent factor behind the economic decline. The UK will be the only country worldwide to hit a major economic decline. However, Russia, which faced sanctions from different countries due to the war against Ukraine, is expected to increase economic growth.
The words of the IMF officials on this forecast are- “Britain’s economic decline predicts tighter fiscal and monetary policies and financial conditions, and still-high energy retail prices weighing on household budgets.”
The decline in any country’s economy means a higher unemployment rate and fewer business profits.
Also Read: IMF Predicts India, China To Lead Global Economy in 2023
Pierre- Olivier Gourinchas said, “The forecast clearly shows the UK’s high dependency on imported natural liquid gas that increases the cost of living there.”
On the other hand, the IMF also predicts that the UK is expected to grow in the economy in 2024. If Britain’s government takes the necessary measures, the major economy can rise from 0.6% to 0.9%. It is interesting to see the views of the UK finance minister and their strategies to face the upcoming recession.
