China factory slide intensifies; economists say UK faces worst recession in G7 – business live
New Year starts with warnings from IMF and UK leading economists, as China’s factory slump worsens
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
The New Year has started with a warning from the International Monetary Fund’s head, Kristalina Georgieva, that a third of the global economy will be in recession this year, and that 2023 is going to be tougher than last year. Economists are warning that the UK faces the worst and longest recession among G7 countries.
The 2023 recession will feel much worse than the economic impact of the pandemic.
2023 has started with further escalation of tensions between Russia and Ukraine as a missile strike on a Russian military facility in the occupied territory in Ukraine killed 63 troops. This is more than likely to have an even more aggressive response from Russia. Overall, it doesn’t look like 2023 has started with a downshift in tensions between the two countries, and it is more than likely that the situation may actually become even worse after the current incident before becoming better.
8.55am GMT: Germany unemployment for December (forecast: 15,000, 5.6% rate)
9.30am GMT: UK S&P Global/CIPS Manufacturing PMI final for December (forecast: 44.7)
1pm GTM: Germany Inflation for December (forecast: 9.1%)
2.45pm GMT: US S&P Global Manufacturing PMI final for December
