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Daily Record
Daily Record
Politics
Andrew Quinn

SNP and Labour blame Tories for predicted economy shrink


The SNP and Scottish Labour have criticised the Conservatives after the International Money Fund (IMF) warned that the UK's economy will shrink in 2023.

The UK is set to be the only major economy to shrink this year with all other developed nations experiencing growth, including sanction-hit Russia.

When the economy shrinks, unemployment is likely to go up and prices can rise.

The SNP have blamed "Tory incompetence and a disastrous Brexit" for the lack of growth on the three year anniversary of the UK leaving the EU.

Scottish Labour said that the figures are "proof of the immense damage the Tories are doing to our country."

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The IMF predicted that the UK's gross domestic product (GDP) would shrink by 0.6 per cent in 2023.

The UK had been predicted to have 0.3 per cent growth for 2023 in October. The IMF blamed high energy prices, mortgage costs and worker shortages for the change.

The UK's economic forecast lags behind other G7 countries. The IMF predicts growth of 1.4 per cent in the United States, 0.1 per cent in Germany and 0.7 per cent in France.

It also predicts growth of 0.6 per cent in Italy, 1.8 per cent in Japan and 1.5 per cent in Canada. Even sanction-hit Russia is to grow by 0.3 per cent.

The SNP’s economy spokesperson Stewart Hosie MP firmly placed the blame on Brexit. He said independence was the only way for Scotland to "escape the economic turmoil of Westminster control".

He also said there would be "no respite" under a Labour government.

Hosie said: “Britain is sinking as a perfect storm of Tory economic incompetence and a disastrous Brexit is causing the UK economy to go into freefall, Scotland needs the lifeboat of independence to escape the constant decline of the UK.

“Every developed country is set to grow this year, but the difference being that none of those countries have inflicted the economic self-harm of Brexit on themselves and Scotland has had to suffer the consequences despite overwhelmingly rejecting leaving the EU.

“Even Russia, which is being rightly heavily-sanctioned for its invasion of Ukraine, is predicted to grow its economy this year. That is just how far broken Brexit Britain has fallen, and it is only going to get worse because of the economic incompetence of this UK government.

“There would be no respite for Scotland under a pro-Brexit Labour government either as it would still keep Scotland outside the European Union, a market seven times the size of the UK.

“That is why the only way for Scotland to escape the economic turmoil of Westminster control is by becoming an independent country.”

Labour's Shadow Scottish Secretary Ian Murray said the Tories were failing to grow the economy UK-wide and that the SNP were failing to do so in Scotland.

Murray said: “This latest prediction that the U.K. economy will have the slowest growth among major economies is proof of the immense damage the Tories are doing to our country.

“After 13 years of economic incompetence, handing out cash to their mates while businesses suffer, we desperately need a change of government.

“At the same time, the SNP is failing to grow the economy in Scotland.

“At the next election, Labour can do more than oppose the Tories, we can replace them altogether and transform the country.”

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