UK to Face 'Worst, Longest' Recession Among G7 Countries in 2023, Reports Say

MOSCOW (Sputnik) - The United Kingdom will face one of the longest recession and weakest recovery among G7 countries throughout 2023 due to long-term inflationary effects of the pandemic and conflict in Ukraine, the US media reported, citing leading UK economists.

According to economists interviewed by the media, the UK would face a longer period of "inflationary shock" than most of G7 states, which would force the government to conduct a strict fiscal policy throughout 2023.

"The combination of falling real wages, tight financial conditions and a housing market correction are as bad as it gets," claims Kallum Pickering, senior economist at Berenberg bank.

The UK economy is "unusually exposed" to a worldwide surge in energy prices and interest rates as the country's demand for gas hardly matches storage capacity and a large number of mortgage deals will have to renew fixed-rate contracts, the report noted.

The UK has been experiencing an economic crisis over the past months. According to the Bank of England, the UK economy has entered a recession expected to last until the second half of 2024.