Global economy to avoid recession but UK outlook remains gloomy

JACK BARNETT

THE GLOBAL economy will narrowly avoid a recession this year due to China dismantling its zero Covid policy, forecasters predicted yesterday.

A boost from the world’s second biggest economy re-entering the global community is set to power world GDP 1.9 per cent this year, according to S&P Global Market Intelligence.

Beijing’s surprise scrapping of its tough response to the Covid-19 pandemic has reduced the risk of the Chinese economy notching a third successive year of lower than possible growth.

Experts, however, think Britain is likely to suffer the toughest recession out of rich nations due to it grappling with a knottier inflation surge driven by high energy prices and worker shortages.

Although economists’ worst predictions about the length and depth of a coming recession have been pared back following better than expected economic data, experts have warned the slump will knock two per cent off GDP, a similar hit to the early 1990s downturn.