UK to Face 'Worst, Longest' Recession Among G7 Countries in 2023, Reports Say
The United Kingdom will face one of the longest recession and weakest recovery among G7 countries throughout 2023 due to long-term inflationary effects of the pandemic and conflict in Ukraine, the US media reported, citing leading UK economists. | According to economists interviewed by the media, the UK would face a longer period of "inflationary shock" than most of G7 states, which would force the government to conduct a strict fiscal policy throughout 2023. 💬 "The combination of falling real wages, tight financial conditions and a housing market correction are as bad as it gets," claims Kallum Pickering, senior economist at Berenberg bank. ● The UK economy is "unusually exposed" to a worldwide surge in energy prices and interest rates as the country's demand for gas hardly matches storage capacity and a large number of mortgage deals will have to renew fixed-rate contracts, the report noted. The UK has been experiencing an economic crisis over the past months. According to the Bank of England, the UK economy has entered a recession expected to last until the second half of 2024.