The United Kingdom, neglected for years by investors, is set to have the worst economic performance among major economies. But its outlier status may create opportunities, especially if things don’t turn out as badly as many predict.
The International Monetary Fund sees the U.K.’s economy contracting in 2023, the only Group of Seven economy to do so. It’s one of two advanced economies that has yet to recover the output lost since the start of the Covid-19 pandemic—the other being Russia. And the Bank of England predicts the nation will spend much of the coming year in recession, even as it continues to raise interest rates.