Despite the forecast, the IMF also said it believed the UK economy is now 'on the right track'.
The UK economy will shrink and perform worse than other advanced economies as the cost of living continues to hit households, the International Monetary Fund has said.
In its World Economic Outlook update, the IMF, which works to stabilise economic growth, said the UK's Gross Domestic Product would shrink rather than grow by 0.3% this year. The IMF predicted the UK would be the only country - across the world's advanced and emerging economies - to suffer a year of declining GDP. Even sanctions-hit Russia is now forecast to grow this year.
"But it is true that we are forecasting a sharp slowdown in 2023, with growth that would turn even negative for the year."He said the revision reflected the "fact that we have a very challenging environment in the United Kingdom", which he said was caused by high energy prices as well as "high dependence on liquid natural gas".
And the IMF said in 2024 it expected the UK economy to grow by 0.9%, up from a previous forecast of 0.6%.Sophie Lund Yates, senior equity analyst at Hargreaves Lansdown, told the BBC's Today programme the UK was not the only major economy struggling and there was a chance it could "squeak out a little more positivity" than the IMF had predicted.
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