Economic Growth

Charted: UK is the only G7 country expected to face a recession in 2023

UK banknotes.

The IMF expects UK GDP to contract by 0.6% this year. Image: Unsplash/Kenny Eliason

Anna Fleck
Data Journalist, Statista
Share:
Our Impact
What's the World Economic Forum doing to accelerate action on Economic Growth?
The Big Picture
Explore and monitor how United Kingdom is affecting economies, industries and global issues
A hand holding a looking glass by a lake
Crowdsource Innovation
Get involved with our crowdsourced digital platform to deliver impact at scale
Stay up to date:

United Kingdom

  • The UK is expected to be the only G7 country to fall into recession in 2023, according to the International Monetary Fund (IMF).
  • The IMF has downgraded its outlook for the UK over the past three months, and now sees the country's economic prospects as being worse than those of sanction-hit Russia.
  • It expects UK GDP to contract by 0.6% this year, but forecasts growth of 0.9% in 2024.

The United Kingdom is expected to be the only G7 country to fall into recession in 2023, according to the latest estimates of the International Monetary Fund. Annual GDP is set to contract some 0.6 percent in the coming year, predominantly due to higher taxes, rising interest rates and the high cost of energy as well as lower government spending.

The UK’s outlook has worsened since the IMF estimated a 2023 growth of 0.3 percent last October. Its prospects are now worse than those of sanction-hit Russia. The IMF’s latest World Economic Outlook does predict, however, that the UK’s output will grow by 0.9 percent in 2024.

As our chart shows, the other G7 member states are expected to see growth, even if only marginally, with Japan taking the lead with a 1.8 percent increase, followed by Canada (1.5 percent) and the United States (1.4 percent). Where the UK once.

Charts showing the annual GDP growth projections by country
Japan expected to have the highest annual GDP growth in 2023 Image: Statista/IMF
Have you read?
Loading...
Don't miss any update on this topic

Create a free account and access your personalized content collection with our latest publications and analyses.

Sign up for free

License and Republishing

World Economic Forum articles may be republished in accordance with the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International Public License, and in accordance with our Terms of Use.

The views expressed in this article are those of the author alone and not the World Economic Forum.

Share:
World Economic Forum logo
Global Agenda

The Agenda Weekly

A weekly update of the most important issues driving the global agenda

Subscribe today

You can unsubscribe at any time using the link in our emails. For more details, review our privacy policy.

The global supply of equities is shrinking – here's what you need to know

Emma Charlton

April 24, 2024

About Us

Events

Media

Partners & Members

  • Join Us

Language Editions

Privacy Policy & Terms of Service

© 2024 World Economic Forum