The UK economy is expected to have one of the worst years ever

The UK economy would do the poorest among the 20 largest economies, known as the G20, which also includes Russia, which is suffering from sanctions, according to the International Monetary Fund (IMF)

The global financial system will have a “rocky road,” according to the IMF.

It comes after the failure of two US banks last month, which was swiftly followed by competitor UBS’s hasty acquisition of Swiss banking behemoth Credit Suisse, raising concerns about the possibility of a new financial catastrophe.

The IMF had previously predicted that the UK will face a slump this year and be at the bottom of the G7, a grouping of the seven biggest so-called “advanced” nations in the world that control global commerce and the international banking system. In 2022, the year of the pandemic comeback, the UK led the pack.

Despite the UK being predicted to have the poorest economic performance this year, the IMF’s most recent prognosis indicates a little improvement over its earlier prediction of a 0.6% drop.

British susceptibility to high gas costs, increasing interest rates, and a slow trade performance have all been cited by IMF experts as contributing factors to the country’s poor economic performance.

The purpose of forecasts is to provide a general indication of what is most likely to occur in the future, although they are not always accurate. For instance, a review of global recessions between 1992 and 2014 by the IMF found that earlier projections only correctly predicted less than 10% of them a year in advance.

Chancellor Jeremy Hunt commented in response to the most recent IMF projections: “Our IMF growth expectations have been boosted by more than any other G7 countries.

Now, according to the IMF, our economy is growing as planned. The strain on everyone will be reduced if we follow the plan and more than half inflation this year.

However, Labour’s shadow chancellor Rachel Reeves claimed that the projections demonstrated “just how far we continue to lag behind on the global stage.”

She said, “This matters not just because 13 years of slow growth under the Tories have weakened our economy, but also because it explains why households are worse off, are subject to a Tory mortgage penalty, and are witnessing the sharpest decline in living standards in recorded history.