UK economy to decline in 2023 and 2024 as US and eurozone grow

Think tank predicts US and European GDP to grow while UK declines

Valeria Martinez
clock • 2 min read

The UK economy is set to shrink both this year and in 2024, while the US and euro area will see subdued growth, according to the Peterson Institute for International Economics (PIIE).

In its Fall 2023 Global Economic Prospects report, the Washington-based economic think tank projected that, on a year-over-year basis, UK real GDP growth would decline 0.3% in 2023 and 0.2% in 2024. PIIE noted the UK had recently entered a mild recession, as the country's gross domestic product shrank by 0.5% in July, worse than analysts had predicted and continuing a trend of weak economic growth in the UK. The think tank said European growth may recover in 2024, but noted "the recovery there remains fragile". PIIE projected euro area real GDP growth to be 0.6% in 2023 and 1% in 2024...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Bank of England warns of future rate uncertainty after vote to hold at 3.75%

Bank of England warns of future rate uncertainty after vote to hold at 3.75%

One vote to hike rates

Michael Nelson
clock 30 April 2026 • 2 min read
Navigating an uncertain environment: Applying a disciplined, data-driven approach

Navigating an uncertain environment: Applying a disciplined, data-driven approach

'​Looking ahead, the fundamental case remains constructive'

Fahad Hassan
clock 28 April 2026 • 2 min read
UK inflation rises to 3.3% in March as Iran conflict impacts fuel prices

UK inflation rises to 3.3% in March as Iran conflict impacts fuel prices

Motor fuel rose 4.7%

Michael Nelson
clock 22 April 2026 • 2 min read