The International Monetary Fund (IMF) predicts that the UK economy will shrink the most in 2023, it will continue to shrink by 0.3% in this year. This decline in the economy of the UK will be the one of the worst economic declines of the G7 richest nation.
On the economists said that we can expect a growth in the UK economy by 1% next year but before that we will get to see a decline in the UK economy by 0.3%.
G7 Nations Economic Performances
After the shock of Covid-19 pandemic, many of the non-G7 nations are powering ahead, meanwhile the G7 richest nation UK is at the bottom of the economic level. But in 2022, the UK topped the economy chart by leaving the other G7 nations behind it.
The G7 richest nation consists of Canada, France, Germany, Italy, Japan, the US and UK.
Thoughts on UK Economy
According to some of the forecasters there is a chance of not shrinking the UK economy, but the IMF still thinks that the UK economy will decline, and the IMF has already released the forecast for the UK and the other world economies.
The reason behind the shrinking economy of the UK is the increment in the prices of the gas and also the increment in the interest rates, according to the research of IMF. Central banks of the UK increased the interest rate to combat the increment in the prices which is known as inflation.
IMF has already warned that if there’s going to be more financial stress then the economic growth will continue to weaken.
In a blog, the IMF said, the increment in the interest rates is temporary, but the IMF did not say anything about when the interest rates will fall down to a lower level.
