The International Monetary Fund had warned that the UK is set for the slowest growth of the G7 richest economies next year. According to the predictions, UK growth will fall to just 0.5% in 2023, much lower than its forecast in April of 1.2%.

The global economy has decreased for the first time since 2020, the IMF said, hit by the Ukraine war and Covid-19. With growth disruption in the UK, US, China, and Europe, the world "may soon be teetering on the edge of a global recession", it said.

"We know that people are feeling the impact of rising prices, caused by global economic factors, triggered by the illegal Russian invasion of Ukraine," an HM Treasury spokesperson said in a statement, adding that help for households comprised £400 off energy bills plus personal tax cuts worth up to £330 a year.

The IMF has cut its 2022 global growth forecast to just 3.2% and notified the slowdown risks being even more drastic.

It said fast-rising prices were to blame for much of the slowdown, with families and businesses clasped by a combination of higher prices and higher borrowing costs as policymakers raise interest rates to try to counter inflation.

"The global economy, still reeling from the pandemic and Russia's invasion of Ukraine, is facing an increasingly gloomy and uncertain outlook," economist Pierre-Olivier Gourinchas wrote in a blog outlining the international lending body's latest economic forecast.
"The outlook has darkened significantly" since April, the last time the IMF issued forecasts, he added.

In the time of deciding who will be the new PM, it is essential to be aware of the economic crisis the country is going through. People are struggling and going on strike as they find it difficult to live.

Source: The BBC