The UK is predicted to be the only G7 economy to experience a contracting in 2023, according to the International Monetary Fund.

The organisation predicted that the nation's GDP will shrink by 0.3 per cent over the coming year, reflecting things such as high energy prices, "tighters fiscal policies" and inflation.

That is a downgrade on the previous prediction which was for between 0.3 and 0.6% growth.

The UK is the only G7 member expected to experience negative growth, with the report stating that the US, Germany, France, Italy, Spain, Canada and Japan are all forecast to grow over 2023.

Even Russia, which has been hit by sanctions following the invasion of Ukraine, is expected to experience growth in the coming years.

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It's not all bad news for the UK, however, with the IMF currently predicting 0.9% growth for 2024.

Shadow chancellor Rachel Reeves said the figures showed the UK "lagging behind our peers" while Carolina Lucas of the Green Party said "Brexit going swimmingly, thanks".

Government minister Richard Holden insisted the UK can “outperform” the International Monetary Fund (IMF) prediction.

He told GB News: “What we’ve seen actually over the last couple of years, this isn’t a forecast, this is what actually happened, both the IMF and the OECD said the UK would grow more slowly than other countries, well let’s look at what actually happened.

“Actually we’ve grown faster than those countries, we’ve grown faster than Germany since 2016, we’ve grown faster than France, Italy, and Japan since 2010. We’re actually outperforming these predictions.

“I’m not saying there aren’t headwinds, internationally, there certainly are, but I think Britain can outperform just like we have done and beat these forecasts just like we have done over the last couple of years.”