Britain is set to be hit by the biggest recession out of all the world’s largest economies, according to analysts at Insurer Allianz Trade.
The UK’s economy is predicted to shrink by 0.9 percent in 2023 while business insolvencies will rise by 15 percent.
Germany will see a 0.7 percent shrinkage , France’s economy will slump by 0.4 percent and the US is expected to see a decline of 0.3 percent.
The analysts also warned that companies across the UK and Europe will see a ‘’massive profitability shock’’ as the cost of soaring energy bills will not be full offset b governmental support.
Inflation is also expected o remain ‘’uncomfortably high’’ although rising rates will slow from nine percent in 2022 o 7.5 percent his ear.
A global recession is forecast to hi in 2023, with worldwide growth of jus 1.4 percent his ear, down from 2.9 percent last year, before rebounding to 2.8 percent in 2024.
Maxime Darmet, Senior Economist a Allianz Trade, said global trade would ‘’continue to slow’’ with the manufacturing sector especially impacted due to low demand.
Kristalina Georgieva, Managing Director of the International Monetary Fund(IMF), previously predicted a third of the world economy would be in recession this year.
Ms Georgieva warned the US, EU and Chinese economies were all slowing simultaneously , with the growing Covid- 19 outbreak in China affecting economic growth negatively across he world.
Source: Express .co.uk/news