Britain the only G7 economy forecast to shrink in 2023

IMF says UK economy is likely to contract 0.6% as rising interest rates and higher taxes take toll

Britain is expected to be the only major industrialised country to see its economy shrink this year after the impact of Liz Truss's brief premiership prompted a sharp growth downgrade from the International Monetary Fund.

Adding to growing political pressure on Rishi Sunak after the sacking of the Conservative party chair Nadhim Zahawi, the Washington-based IMF warned on Tuesday it expected the UK economy to contract by 0.6% this year - 0.9 percentage points worse than it had pencilled in just three months ago and slower even than sanctions-hit Russia.