The International Monetary Fund (IMF) has warned that the UK economy is expected to be the weakest among the G7 major economies in 2023.
UK growth is forecast to slow to just 0.5% next year, well below the previous forecast of 1.2% growth.
It also cut its growth forecast for this year to 3.2% and warned of the risk of a further slowdown.
As you know, the energy crisis has increased price pressure and caused a high cost of living in Europe. The Bank of England's (BOE) move to ease inflation also worsened the outlook for growth.
In the meantime, the IMF also sees the probability of a recession in the G7 economy rising to about 15%, almost 4 times higher than usual.
In the three months to July, the global economy has shown contraction where it was the first decline recorded since the Covid-19 epidemic hit in 2020.
This led to it reducing the global growth forecast for 2022 to 2.9% from 3.6% previously, according to the updated world economic outlook.
Problems in the United States, China and the European Zone have caused global output to fall in the second quarter of this year, the IMF said.
This follows a string of Covid-19 shutdowns implemented in major Chinese and European cities affected by sanctions on Russia as well as aggressive interest rate hikes by the main central bank, the Federal Reserve (Fed).
