Britain is at risk of a major economic downturn next year according to one of the world’s biggest active bond fund managers.

Daniel Ivascyn, chief investment officer at Pimco, warned that his company is running larger than usual bets on UK government bonds compared to the US as he expects the UK economy to struggle in 2024.

It comes as Britain grapples with interest rates at 15-year highs of 5.25pc, while the Bank of England expects growth to be flat.

“In the case of the UK — a smaller, open economy, with a consumer that’s feeling the brunt of central bank policy far more than their US counterparts — you just have a higher probability of more significant economic deterioration,” Mr Ivascyn told the Financial Times.

“We do think there’s potentially more hard landing risks.”

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