Fact Service February 2023

UK to be only major economy to shrink in 2023, says IMF

The UK will be the only major advanced economy to shrink this year, and will even be outperformed by sanctions-affected Russia, the IMF (International Monetary Fund) has said.

The IMF predicts that the economy will contract by 0.6% in 2023, after downgrading its previous prediction of limited expansion, which was based on “relatively stronger growth” in 2022,

“It is true that we are expecting a fairly sharp slowdown in this year. We’re projecting a growth that is -0.6 percent for the year. And that’s a downward revision of 0.9 percentage point,” Pierre-Olivier Gourinchas, chief economist and director of the IMF research department, explained.

In a separate development, UK general government gross debt reached £2,445.2 billion in the third quarter (July to September) of 2022, equivalent to 100.2% of gross domestic product, according to the latest figures from the Office for National Statistics (ONS).