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News > United Kingdom

UK Might Be Hit Harder by the Economic Crisis

  • The economic forecast for the UK indicates a decrease for 2023. Jun. 8, 2022.

    The economic forecast for the UK indicates a decrease for 2023. Jun. 8, 2022. | Photo: Twitter/@bmusonza

Published 8 June 2022

According to the OECD, the United Kingdom will suffer an economic fall resulting from the ongoing military operation in Ukrainian territory.

In the latest forecast of the Organisation for Economic Co-operation and Development, it was predicted that the United Kingdom's economy will fall by 2023. They alerted how "the war is slowing the recovery" of the affections caused by the COVID-19 pandemic in the European community.

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The OECD decreased its predictions from December 2021 by up to 3.2 percent for some countries' economies. According to this data, Japan is at the top of the hardest hit, with its projection decreasing to 1.7 percent from its previous 3.41 percent. Japan is followed by Germany and France with 1.87 percent respectively. The U.S. forecast is in the range of 2.46 percent.

The forecast revealed that the U.K. would see economic growth holding up at 3.64 percent. On the other hand, the report also indicated that such growth will fall to zero in 2023, which is being compared with 1.2 percent for the U.S. and an average of 1.6 percent for the 17 Eurozone states.

The U.K. has been one of the states leading the sanctions imposed on Moscow after the beginning of the Russian special operation in Ukrainian territory, taking advantage of its condition of less dependence on Russia's natural gas and oil imports.

Since the beginning of the Ukrainian conflict, the OECD has warned of how the soaring commodity prices could be the main brake on economic recovery, making the Russian special military operation liable for the sharply record inflation.

"Countries worldwide are being hit by higher commodity prices, which add to inflationary pressures and curb real incomes and spending, dampening the recovery," told Mathias Cormann, OECD Secretary-General. "This slowdown is directly attributable to Russia's unprovoked and unjustifiable war of aggression, which is causing lower real incomes, lower growth, and fewer job opportunities worldwide."

On the other hand, the group's chief economist Laurence Boone reproduced a statement made by Kiev, claiming that the current armed conflict was threatening worldwide hunger by preventing exports of Ukrainian grain crops from the southern port of Odessa.

"The Outlook is sobering, and the world is already paying the price for Russia's aggression," said the official. "The choices made by policymakers and citizens will be crucial to determining how high that price will be and how the burden will be shared. Famine is not a price the world should pay."

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