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21m ago
09.48 GMT
UK faces worst recession in G7, economists say
In his new
year’s message Boris Johnson said he was confident about 2023 because the
economy was “going to start to turn around”. But leading economists have a much
more gloomy take, because they believe recovery will take longer in the UK than
elsewhere, according to the Financial Times. The FT has surveyed more than 100
leading economists and their prognosis for the UK is grim. In their story
Delphine Strauss and Valentina Romei report
The UK will
face one of the worst recessions and weakest recoveries in the G7 in the coming
year, as households pay a heavy price for the government’s policy failings,
economists say.
A clear
majority of the 101 respondents in the FT’s annual poll of leading UK-based
economists said the inflationary shock caused by the pandemic and the Ukraine
war would persist for longer in the UK than elsewhere, forcing the Bank of
England to keep interest rates high and the government to run a tight fiscal
policy.
More than
four-fifths expected the UK to lag its peers, with GDP already shrinking and
set to do so for much or all of 2023.
The result
is expected to be an intensifying squeeze on household incomes, as higher
borrowing costs add to the pain already caused by soaring food and energy
prices.
And here is
an FT graph showing one of the findings from the survey.
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