Economists assume that the UK in 2023 will face the most severe recession in the economy compared to other countries of the «Big Seven». At the same time, this decline will be felt much worse than the economic consequences of the pandemic in 2020. In their opinion, the inflationary shock caused by the pandemic and the special military operation in Ukraine will persist in Britain longer than in other countries. The fact is that the Bank of England is likely to maintain high interest rates, and the government of the country will continue to pursue a tougher fiscal policy. According to analysts, the UK's GDP, which has already begun to decline, will continue to fall in 2023. As a result, the indicator of economic growth may decrease by 1%, while the US GDP will increase by 0.25%. Recall that the Bank of England raised the rate by 50 basis points — from 3% to 3.5%. The regulator also said that the economy of the United Kingdom has entered a recession, which is expected to last all of 2023 and the first half of 2024. Annual inflation in the UK by the end of November 2022 was 10.7%.
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