Britain will face the worst recession in the economy compared to other G7 states this year. This is reported by the Financial Times with reference to economists.
The inflation shock caused by the pandemic and the special operation of the Russian Federation in Ukraine will last longer in the United Kingdom than in other states, experts suggest. According to them, because of this, the Bank of England will be forced to maintain high interest rates, and the British Cabinet – to pursue a tighter fiscal policy.
Thus, it is assumed that in 2023 Britain will face one of the worst recessions and the weakest recovery in the G7, as households “pay a high price” for the political miscalculations of the country’s Cabinet.
According to economists, the British GDP, which is already shrinking, will continue to fall this year. According to Consensus Economics, the United Kingdom’s GDP will fall by 1 percent. In parallel with this, US GDP will grow by 0.25 percent.
It is assumed that this year’s recession in the UK will be felt much worse than the economic consequences of the pandemic.
The experts added that the current year for British consumers will be “heavy, gloomy, harsh, miserable and terrible.”