UK to be one of worst performing economies this year, predicts IMF

The UK is set to have the worst-performing economy in the G20 this year, according to predictions from the International Monetary Fund (IMF), due to a forecasted shrinkage. 

Although the predictions are grim, they are a small upgrade from the IMF’s previous prediction on the health of the UK economy. They have still warned of the “rocky road” ahead for the global financial system due to recent instabilities. 

The IMF prediction on the UK’s economy points to Britain’s exposure to high gas prices, rising interest rates and slow trade performances as factors for the UK’s weak economic performance. 

Chancellor Jeremy Hunt takes a positive approach to the IMF’s predictions suggesting they show the UK is on the right track for economic growth. But for Labour’s Rachel Reeves sees the estimates as highlighting how much the UK is behind on the global stage. 

Bank of England governor Andrew Bailey recently stated that he was “much more hopeful” for the economy, and it was no longer heading into an immediate recession. 

Separately, the IMF has also predicted that real interest rates in major economies will fall to pre-pandemic levels due to low productivity and ageing populations.