Support 110 years of independent journalism.

  1. Chart of the Day
17 November 2022

The UK has become the sick man of Europe again

Britain’s economy is forecast to perform worse than any other in Europe next year.

By Nick Ferris

In his Autumn Statement the Chancellor, Jeremy Hunt, said that the Office for Budget Responsibility had judged the UK to be in recession, “like other countries”. In one sense this is true: the post-Covid supply chain crisis and the war in Ukraine have indeed caused economic turmoil around the world.

But the economic slumps faced by most countries are small compared to that of the UK. In 2023 just three of the 27 EU countries – Germany, Sweden and Latvia – are expected to experience declines in GDP, according to the European Commission. The declines will be 0.6 per cent, 0.6 per cent and 0.3 per cent respectively – much less severe than the 1.4 per cent contraction the OBR predicts for the UK.

The UK’s particularly severe downturn has been attributed to both the impact of Brexit and Liz Truss’s calamitous “pro-growth” mini-Budget, which led to a spike in interest rates and a further decline in economic confidence. As ever, it will be ordinary citizens who bear the brunt of the recession. The combination of a shrinking economy and renewed austerity has led the OBR to forecast a drop in living standards of 7.1 per cent over the next two years, the largest fall since records began in the 1950s.

[See also: The Autumn Statement was an elegy from a Conservative Party in mourning]

Select and enter your email address Your weekly guide to the best writing on ideas, politics, books and culture every Saturday - from the New Statesman. Sign up directly at The New Statesman's quick and essential guide to the news and politics of the day. Sign up directly at Stay up to date with NS events, subscription offers & updates. Weekly analysis of the shift to a new economy from the New Statesman's Spotlight on Policy team.
  • Administration / Office
  • Arts and Culture
  • Board Member
  • Business / Corporate Services
  • Client / Customer Services
  • Communications
  • Construction, Works, Engineering
  • Education, Curriculum and Teaching
  • Environment, Conservation and NRM
  • Facility / Grounds Management and Maintenance
  • Finance Management
  • Health - Medical and Nursing Management
  • HR, Training and Organisational Development
  • Information and Communications Technology
  • Information Services, Statistics, Records, Archives
  • Infrastructure Management - Transport, Utilities
  • Legal Officers and Practitioners
  • Librarians and Library Management
  • Management
  • Marketing
  • OH&S, Risk Management
  • Operations Management
  • Planning, Policy, Strategy
  • Printing, Design, Publishing, Web
  • Projects, Programs and Advisors
  • Property, Assets and Fleet Management
  • Public Relations and Media
  • Purchasing and Procurement
  • Quality Management
  • Science and Technical Research and Development
  • Security and Law Enforcement
  • Service Delivery
  • Sport and Recreation
  • Travel, Accommodation, Tourism
  • Wellbeing, Community / Social Services
Visit our privacy Policy for more information about our services, how New Statesman Media Group may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.

Topics in this article : , ,