The International Monetary Fund predicts the UK economy will shrink this year, alongside Germany.
The IMF had already forecast that the UK would experience a mild downturn this year and be bottom of the pile of the G7 group of major nations, which it topped last year during the pandemic rebound.While many forecasters think the chances of a recession are declining, the IMF still predicts the UK will shrink this year, alongside Germany.
The new forecasts come against the backdrop of a world economy that continues to recover from both the pandemic and the Ukraine war energy shock. The IMF now expects global growth to fall from 3.4% in 2022 to 2.8% in 2023, before rising slowly and settling at 3% in five years' time.
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