UK economy to shrink in 2023, worst performance among G20 nations: IMF
The UK is set to be one of the worst performing major economies in the world this year, according to the International Monetary Fund (IMF).
It says the UK economy's performance in 2023 will be the worst among the 20 biggest economies, known as the G20, which includes sanctions-hit Russia.
The IMF predicts the UK economy will shrink this year, although this is a small upgrade from its last forecast.
It also warned of a "rocky road" for the global financial system.
It follows the collapse of two US banks last month, closely followed by a rushed takeover of Swiss banking giant Credit Suisse by its rival UBS, which sparked fears of another financial crisis.
The IMF had already forecast that the UK would experience a downturn this year and be bottom of the pile of the G7 - a group of the world's seven largest so-called "advanced" economies, which dominate global trade and the international financial system. The UK topped the group in 2022 during the pandemic rebound.
It now expects the UK economy to shrink by 0.3% in 2023 and then grow by 1% next year.
Although the UK is forecast to have the worst economic performance this year, the IMF's latest prediction is slightly better than its previous expectation of a 0.6% contraction, made in January.
IMF researchers have previously pointed to Britain's exposure to high gas prices, rising interest rates and a sluggish trade performance as reasons for its weak economic performance.