The UK in 2023 may face the most serious recession among the other countries of the G7 alliance. This was written on Monday, January 2, by the Financial Times.
According to most experts of the publication, the inflation shock in the UK, caused by the consequences of the pandemic and the conflict in Ukraine, will encourage the Bank of England to keep high interest rates. The UK government, in turn, will adhere to a strict tax policy.
“The 2023 recession will feel much worse than the economic impact of the pandemic,” said labor market specialist John Philpott. It will also be difficult for owners of mortgages or a general low income.
According to Callum Pickering, senior economist at Berenberg Bank, the fall in real wages of citizens, tight financial conditions and corrections in the housing market will be especially difficult.
“The UK is in a structural hole, not in a cyclical recession,” said University of Cambridge professor Diane Coyle.
Earlier, on December 31, Prime Minister Rishi Sunak said that the UK’s economic problems in 2023 will not end. He noted that 2022 has been a difficult year for many Britons, who are faced with an unprecedented increase in electricity prices.
Prior to that, on December 12, it became known that the real salary of the British by the end of 2022 fell by a maximum of 3% with a general increase in the cost of living. This was the worst result since 1977 and the second in the history of the country since 1945.
