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...

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