Liz Truss’s Inheritance: A U.K. Economy on Its Knees

LONDON—Britain’s new Prime Minister, Liz Truss, will face the most daunting economic outlook for an incoming British leader since her political hero, Margaret Thatcher, became the U.K.’s first female prime minister in 1979.

Britain’s slowing economy is poised to enter recession, inflation is at its highest rate in decades and households are facing crippling energy bills from the war in Ukraine.