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IMF says UK will be the only leading economy to see recession in 2023

Yahoo Finance Live’s Rachelle Akuffo discusses the IMF outlook for Britain’s economy and global economic growth.

Video Transcript

PIERRE-OLIVIER GOURINCHAS: Cost-of-living indices have peaked in the last part of last year and are now coming down. Broader measures of inflation that, you know, are more-- exclude energy and food prices, what we call core inflation, these have not yet peaked and come down in many parts of the world.

RACHELLE AKUFFO: Well, that was IMF chief economist Pierre-Olivier Gourinchas painting the contrast between the US and other countries still struggling with inflation. Now one surprising entrant in that second category, the UK, the only leading economy the IMF says will see a recession this year.

Now the bank calling for a contraction of up to 0.6%, citing the country's energy exposures and lower numbers of job seekers compared to other countries, allowing prices to rise unchecked. And, of course, still waiting for the hangover of Brexit to kick in all the way in the UK as well.

Well, before we go, let's give you a final check of the markets as we head into the noon hour. We see still positive territory, though relatively flat, at least for the Dow there. Just up slightly there about a quarter of a percent, 87 points. The S&P 500 there up 2/3 of a percent, up 30 points, and the NASDAQ up 1%.

As we keep an eye on what's been happening with the earnings season, seeing how, as everything rolls out, many people-- investors trying to get a gauge on what this means for consumers going forward. We know consumers have been pulling back on spending, and we'll be getting some more bellwether earnings coming out this week.

And, of course, everyone holding their collective breath from the Fed meeting today. We'll get the Fed announcement tomorrow. So a lot of investors holding back on that as well, expecting that 25-basis-point hike, but then this is a new phase that the Fed is entering here. It's gone to that normalcy of 25-basis-point hikes, so we'll see how that plays out for consumers and the fears of recession, which haven't come off the table yet. And, of course, a lot of analysts debating whether or not this is going to be a deep recession or prolonged stagflation.

Well, that'll do it for now. I'm Rachelle Akuffo. I'll be back with you at 11:00 AM Eastern. I'll see you then.