According to International Monetary Fund (IMF) predictions, Britain’s economy is likely to contract by 0.6% due to high interest rates, high inflation and high energy prices. This is a downgrade from the IMF forecast in October which indicated that a 0.3% growth is expected in the year 2023.
According to IMF, UK economy is expected to have grown by 4.1% in 2022, outperforming even the IMF prediction of 3.6%, it had one of the best growth rates among European countries. The newest update is a sharp decline from the earlier predictions resulting from the higher taxes announced by the UK government and increasing interest rates and energy prices.
UK is one of the only heavily industrialized economies and the only G7 country that is predicted to show a contraction in the year 2023.