The rising cost of living is biting businesses and households around the world. Editors from across The Conversation’s international network have asked local academic experts to explain how their countries and regions are tackling this issue, as well as the 2023 outlook for prices and interest rates where they live.
This article is the third in our series on where the global economy is heading in 2023. It follows recent articles on inflation and energy.
UK: recession on the horizon
At first sight, the UK’s cost of living crisis might look fairly mild compared to other countries. Its inflation rate was 10.7% in November 2022, compared to 12.6% in Italy, 16.% in Poland and over 20% in Hungary and Estonia. But the Bank of England expects a recession in the UK this year – possibly lasting until mid-2024.
This is because the proportion of UK households that lack insulation against financial setbacks is unusually large for a wealthy…
