UK To Fall Into Recession1 Feb 2023 00:44
From The FT
The UK is expected to be the only leading economy to slide into recession this year, with the IMF predicting a fall in household spending from high energy prices, rising mortgage costs and increased taxes.
The IMF now expects the global economy to grow 3.2 per cent between the end of the final quarter of 2022 and the end of the last quarter of this year, up significantly from last year and an upgrade from the fund’s last forecast in October.
In contrast, the UK economy is expected to shrink by 0.5 per cent in the same period.
Pierre-Olivier Gourinchas, chief IMF economist, said the world was “well away from any [sign of] global recession”.
But the UK could expect a “sharp correction” in 2023, and the country faced “a quite challenging environment”, he said.
The improved global outlook reflected not just the opening up of the Chinese economy, said the fund, but also an improvement in European prospects following the fall in energy prices.
fnd, For me, I know I've cut my spending. Have you cut your spending? Does this mean many others have cut their spending too, in the UK?