UK is set for slowest growth of G7 nations in 2023

Aside from all the political turmoil in the UK, its economy is only chugging along in comparison to other western nations. While the war in Ukraine has seen global growth shrink, the International Monetary Fund (IMF) has forecast UK’s growth to be just 0,5 percent in 2023, down from 1,2 percent. This compares to 3,2 percent of growth globally and the lowest of the G7, which also consists of Canada, France, Germany, Italy, Japan and the US.

High inflation is expected to curb the UK’s growth, which is rising faster than in Europe or the US, said the BBC. One reason is that ossil fuels make up 75 percent of the UK’s energy mix, compared to 50 percent in Europe.

China is also to see its slowest growth rate in forty years, falling to 3.3 percent. This will impact the luxury brands who are banking on China for profit generation. Some companies, like LVMH, seem to be riding out the storms, posting stellar Q2 results. As the biggest and most diversified luxury group, has a lot of wind in its sails, enough to weather a crisis and storm.