The UK economy is set to contract by 0.4 per cent during 2012, before returning to growth of 1.1 per cent in 2013, according to the International Monetary Fund.
The latest IMF forecast indicates that advanced economies will grow by 1.3 per cent in 2012 and by 1.5 per cent in 2013.
The United States is set to grow by 2.1 per cent in 2013, slightly lower than the 2.2 per cent growth projected for 2012.
The UK will grow more quickly than Germany and France in 2013, which are set to increase by 0.9 per cent and 0.4 per cent respectively. The economies of Italy and Spain will continue to contract, but at slower rates than currently.
The eurozone economy as a whole, like the UK, is set to shrink by 0.4 per cent during 2012, and its growth in 2013 is expected to be 0.2 per cent.
The IMF executive board noted slowing growth in advanced and emerging and developing economies, with the outlook remaining subdued thanks to policies in advanced markets that have “failed to install lasting confidence”.
According to the board, the resolution of the eurozone debt crisis is the most important policy priority.
China, where investors have been scared of a hard landing, is expected to grow by 7.8 per cent in 2012 and by 8.2 per cent in 2013.
India is set to grow by 4.9 per cent in 2012, rising to 6 per cent growth in 2013.
Russia is expected to grow by 3.7 per cent in 2012, before increasing to 3.8 per cent in 2013.
Brazil will see growth more than double in 2013, according to the IMF, rising from 1.5 per cent to 4 per cent.
The IMF is expecting oil prices to drop by 1 per cent in 2013.