UK economy forecast to shrink 1.4% in 2023

REUTERS/Henry Nicholls
The Elizabeth Tower, more commonly known as Big Ben, is seen reflected in a puddle as people walk outside the Houses of Parliament in London, Britain, October 23, 2022.

LONDON, Nov 17 (Reuters) – Britain’s economy is forecast to shrink by 1.4% in 2023, finance minister Jeremy Hunt said on Thursday, citing the latest projections from the Office for Budget Responsibility (OBR).

The new forecast for next year compared with a forecast for growth of 1.8% in the OBR’s previous outlook published in March.

Since then, Britain’s economy has come under strain from an inflation rate now above 11%, a slowing global economy and political and financial market volatility caused by the brief term of Liz Truss as prime minister.

The OBR forecast gross domestic product would grow by 1.3% in 2024 and grow by 2.6% in 2025, Hunt said, compared with the OBR’s previous forecasts of growth of 2.1% and 1.8% respectively.