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UK to face one of the worst recessions in 2023

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UK to face one of the worst recessions in the G7 in 2023

UK to face one of the worst recessions in the G7 in 2023

Posted on January 9, 2023   |  

UK's GDP is expected to drop by 1% in 2023, compared to a contraction of 0.1% for the eurozone as a whole and a growth of 0.25% in the US.

The UK is exposed to the global surge in energy prices and interest rates, with a dependence on gas which is unmatched by storage capacity and a high proportion of mortgages required to renew fixed-rate deals each year.

UK's labor market is expected to lead to more continuous high inflation in the country which will apply a brake to growth for companies, drive industrial unrest, and push up domestically-generated inflation.