Policy mistakes have been blamed for the UK’s expected economic woes in 2023.
A poll of economists featured on the front page of the Financial Times has revealed an almost universal expectation that Britain will endure the deepest and longest recession among G7 countries.
Forecasts compiled by Consensus Economics show GDP shrinking 1 per cent in 2023, compared with a contraction of just 0.1 per cent for the eurozone and growth of 0.25 per cent in the US.
Inflation is also expected to remain unusually high because of labour shortages in the economy.
As Ricardo Reis puts it, the UK “suffers from an energy shock as bad as Europe’s, an inflation problem as bad as the US and a unique problem of labour supply from the combination of Brexit and the NHS crisis.”
Read the analysis in full in today’s FT.