"The Fund's spring forecast trimmed 0.5 percentage points from the UK's 2026 growth projection, the steepest cut handed to any G7 economy since its January outlook."
"The deeper problem is energy. The Iran conflict has delivered the sharpest shock to global supplies since the oil crises of the 1970s, and Britain's gas-heavy power mix leaves it unusually exposed."
The International Monetary Fund has identified Britain as the largest economic casualty of the Iran war among wealthy nations, reducing its 2026 growth forecast by 0.5 percentage points. Inflation is expected to approach 4%, and unemployment is set to rise to its highest level in over a decade. Small and medium-sized businesses are experiencing pressures from decreased consumer demand and persistent cost inflation. The UK economy was already struggling before the conflict, with high inflation rates exacerbating the situation, particularly in energy supply due to the conflict's impact on global markets.
Read at Business Matters
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