UK economic contraction looms for 2023 and 2024, US and Euro area see sluggish growth

Posted on October 3, 2023   |  

The UK's economy is anticipated to contract by 0.3% in 2023 and 0.2% in 2024, indicating economic challenges.

The UK recently entered a mild recession, with a 0.5% decline in GDP in July, which was worse than anticipated.

There is a possibility of a fragile recovery in the euro area in 2024, with expected real GDP growth rates of 0.6% in 2023 and 1% in 2024.

In the US, the economy experienced stronger growth than previously predicted, but the impact of rising interest rates is likely to slow down growth, with a predicted Q4 slowdown. US real GDP growth is expected to decrease from 2.2% in 2023 to 1.6% in 2024.

The global economy is aiming for a smooth landing, but uncertainties persist regarding its stability and future growth.