IMF: UK To Have Slowest Growth Among G7 Countries In 2023

The International Monetary Fund (IMF) has projected that the United Kingdom will have the slowest growth rate among the G7 nations in 2023. The G7 nations include the United States, Canada, France, Germany, Italy, Japan and the United Kingdom.

The IMF has forecasted that the UK’s growth rate will reach only 1.4% in 2023, which is lower than the projected growth rates of other G7 nations. The United States is expected to have the highest growth rate at 2.3%, followed by Canada and Germany at 1.9%, France at 1.6% and Italy and Japan at 1.5%.

Reasons for Slow Growth Rate

The UK’s slow growth rate has been attributed to several factors, including Brexit uncertainty, weak productivity, and slow wage growth. The uncertainty surrounding the Brexit negotiations has caused businesses to hold off on investments, while weak productivity and slow wage growth have led to lower consumer spending.

The IMF also warned that a “no-deal” Brexit could have severe consequences for the UK economy, including a recession and a further slowdown in growth.

Government’s Response

The UK government has acknowledged the challenges facing the economy and has pledged to increase government spending and investment to support economic growth. Chancellor of the Exchequer, Sajid Javid has announced plans to increase public spending to its highest level in 15 years, with a focus on infrastructure and public services.

  • The government has also announced a package of measures to support businesses, including a reduction in business rates and an increase in research and development tax credits.
  • Prime Minister Boris Johnson has also promised to deliver Brexit on October 31st, with or without a deal, in order to provide certainty for businesses and investors.

However, economists have warned that these measures may not be enough to boost growth in the short-term, and that the UK may need to undertake structural reforms to address underlying issues such as productivity and wage growth.

Despite the challenges facing the UK economy, the IMF has noted that the country’s economy remains “resilient” and that growth is expected to reach 1.3% in 2019.