UK ‘will have slowest growth in G7’

The UK is likely to experience the slowest growth of the G7 richest economies next year, according to the International Monetary Fund’s latest World Economic Outlook forecast.


The IMF expects UK economic growth will fall to 0.5% in 2023, less than half the 1.2% it predicted in April – which itself was virtually half its previous forecast (see Fact Service issue 16).


According to the body, several shocks have hit a world economy weakened by the pandemic: higher than expected inflation worldwide – especially in the USA and major European economies – triggering tighter financial conditions; a worse than anticipated slowdown in China; and further negative effects from the war in Ukraine.


Globally, its baseline forecast is for growth to slow from 6.1% last year to 3.2% in 2022, while its projection for global inflation has been revised upwards, largely due to food and energy prices, and is anticipated to reach 6.6% in advanced economies and 9.5% in emerging market and developing economies.


https://www.imf.org/en/Publications/WEO/Issues/2022/07/26/world-economic-outlook-update-july-2022