Britain will be the worst performing major economy next year apart from sanctions-hit Russia, according to the latest report from the OECD thinktank.
The UK will grow by 3.6% this year but will see zero growth next year. Only six months ago, the thinktank was forecasting 4.7% growth for the UK this year and 2.1% in 2023.
Meanwhile, inflation is expected to average 8.8% this year, peaking at 10%, and falling to a still high 7.4% in 2023.
The OECD said the UK was being hit by a combination of higher interest rates, higher taxes, reduced trade and rising energy prices.
It said the invasion of Ukraine immediately slowed the world's recovery from the COVID-19 pandemic and set the global economy on a course of lower growth and rising inflation.
Overall it expects global growth to decelerate sharply to around 3% this year and 2.8% in 2023, well below the 4.5% and 3.2% respectively projected in the previous Economic Outlook last December.
In the wake of the report, the market is heading lower again.
The FTSE 100 was down 43 points, or 0.6%, at 7556 during early-afternoon trade.