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UK economy likely to shrink in 2023

  • / Updated:
  • Staff Report 

The economy in the United Kingdom is expected to shrink by 0.4% in 2023 while inflation remains high.

Confederation of Business Industry Director-General Tony Danker shared what was happening with the UK economy. He said that “Britain is in stagflation,” according to Reuters. This means there is still rising inflation, negative growth, and less productivity and business investments.

In June the CBI predicted growth of 1.0% in 2023. Britain is suffering with gas prices after Russia’s invasion of Ukraine. The labor market also has not fully bounced back since COVID-19 hit.

In October the inflation rate peaked at 11.1% for the United Kingdom.

While the CBI makes their own prediction for the economy, the British government’s Office for Budget Responsibility predicted a 1.4% decline for 2023.

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