The U.K. is Set To Be One of The Slowest-Growing Economies in the G7 By 2023

Britain is set to be the slowest growing economy in the G7 by 2023.

The U.K.'s gross domestic product (GDP) is now expected to grow by 3.7% this year, down from the 4.7% growth.

According to the International Monetary Fund (IMF), the escalation of the conflict in Ukraine will severely set back the global economic recovery with the UK hit harder than most.

Since the start of the COVID-19 pandemic and the war in Ukraine, Britain has been one of the slowest-growing economies.

The recent conflict in Ukraine is driving up prices for food and fuel which the international body expects to slow growth globally.

Central banks around the world could raise interest rates further to try to keep a lid on inflation.

The IMF has cut its global forecast and also downgraded its outlook for the UK. Britain will no longer be the fastest growing economy in the G7 group of leading Western nations, and will be the slowest in 2023, it says.

While high levels of business confidence suggest that investments will rebound in the 3rd quarter of 2022, net trade likely will continue to be a drag, as British manufacturers continue to be slowly cut out of global supply chains, due to Brexit

The IMF says that UK growth will slow as price pressures lead households to cut spending, while rising interest rates are expected to cool investment.

Faced with a rapid drop in consumer confidence amid a wave of inflation, the UK governments announced several measures to tackle high costs of living.

The UK's economy is now predicted to grow by 3.7% this year, down from the previous forecast of 4.7% made in January. Only Spain and Canada are forecast to better Britain.

However, next year, the UK is expected to have the slowest growth in the G7 and across Europe's main economies, at just 1.2%, a near halving from the 2.3% expected previously. The 2023 UK figure is the slowest apart from heavily-sanctioned Russia in the wider G20 grouping, which includes nations such as China and India.

The World Bank also said it was lowering its growth forecast from 4.1% to 3.2%.

Ukraine is struggling from the countless Russian assaults. The economic effects of the war are spreading far and wide - like seismic waves that emanate from the epicenter of an earthquake.

Inflation pressures are significantly worse than they were when the IMF issued its previous forecast in January.

The IMF predicts inflation in advanced economies such as the U.K. will hit 5.7% this year, while it is likely to reach 8.7% in emerging markets.

UK inflation is expected to be 5.3% in 2023 - the highest in the G7, and higher than all EU members, and only exceeded in the G20 by crisis-ridden Argentina, Turkey and Russia.

Global economic prospects have been severely set back.