UK economy is shrinking, global recession more likely, IMF warns

A senior MF official warned that the global economy had an “uphill road” ahead as UK production contracted and the risk of a global recession increased.

of International Monetary Fund He also claimed that the UK would be the worst performer of the G7 this year.

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But in better news, the IMF now forecasts that the economy will face a more moderate recession, contracting by 0.3% in 2023. The previous forecast was 0.6%.

That leaves the UK as the world’s worst-performing major economy and the only economy other than Germany to contract this year. RussiaWeaponizing gas.

The UK has since recovered and is projected to grow 1% next year, at a rate similar to Japan and the US, suggesting the country will soon overcome the worst of its financial woes. “We see the UK economy performing a little better,” the IMF said.

Prime Minister Jeremy Hunt “The IMF’s growth projections have improved significantly more than any other G7 country.

“The IMF says we are now on the right track for economic growth.

“Sticking to the plan will more than halve inflation this year, easing the pressure on everyone.”

In its biannual World Economic Outlook, the IMF said global economic growth over the next five years would be the weakest since the early 1990s, adding that the global economy was now in a “dangerous phase.”

Concerned that rising interest rates could trigger a serious banking crisis recession.

The IMF added that “the global economic recovery continues, but the road is getting tougher.”

The IMF’s chief economist, Pierre-Oliver Grinchat, also criticized firms for “stretching their profit margins”, raising prices and causing inflation.