“IMF predicts UK economy to rebound and grow by 0.4% in 2023 despite recent crisis”

Jakarta –

The British economy has recently been hit by a fairly severe crisis. Even so, the International Monetary Fund (IMF) estimates that the country can be free from the threat of recession in 2023.

According to Reuters (23/5/2023), the IMF said that the UK’s gross domestic product (GDP) is expected to grow by 0.4% in 2023. Whereas earlier in April the IMF predicted that the British economy could contract by 0.3%.

This condition managed to improve thanks to the growth in the value of workers’ wages which was faster than usual, higher government spending, an increase in the business sector, and the start of a decline in energy costs which had previously soared.

Even so, the country currently led by King Charles has yet to breathe a sigh of relief. Because the country’s economic condition is still relatively weak.

“Economic activity has slowed significantly from last year and inflation figures are still high following the severe exchange rate shocks caused by Russia’s war in Ukraine, and to some extent labor supply is still lacking due to the pandemic,” the IMF said.

Furthermore, the IMF estimates that UK inflation could decline to around 5% by the end of this year, from previously being above 10%. Then inflation is expected to fall to 2% in the middle of 2025.

Thanks to that, the country’s economy is likely to grow by 1% in 2024 and 2% in the next two years, then return to a long-term growth rate of around 1.5% per year.

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(fdl/fdl)