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UK faces biggest hit to growth from Iran war of major economies, IMF says
The Fund said the war-driven energy shock will keep inflation near 4% and delay Bank of England rate cuts.
- On Tuesday, the International Monetary Fund announced Britain faces the sharpest economic growth downgrade among G7 nations, projecting 0.8% growth in 2026, down from 1.3%.
- The IMF attributed the decline to the U.S.-Israeli war with Iran, which doubled natural gas prices and stalled Bank of England interest rate cuts, pushing inflation toward around 4%.
- Britain's unemployment rate is expected to rise to 5.6% this year, while the opposition Conservative Party blamed Finance Minister Rachel Reeves' decisions, including increased taxes on employers.
- Calling the U.S. lack of an exit plan a "folly," Finance Minister Reeves stated the conflict affects families in Britain and around the world, complicating efforts to improve living standards.
- Economic growth is expected to recover to 1.3% in 2027, though IMF Chief Economist Pierre-Olivier Gourinchas warned against untargeted fiscal support, urging narrowly targeted and temporary measures.
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25 Articles
25 Articles
IMF slashes UK economic growth forecasts as Iran war risks global recession
UK ECONOMIC growth forecasts for the next two years have been slashed and inflation will be higher than previously expected as the Iran war threatens to throw the global economy “off course”, the International Monetary Fund (IMF) has warned
·Glasgow, United Kingdom
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Coverage Details
Total News Sources25
Leaning Left6Leaning Right4Center6Last UpdatedBias Distribution38% Left, 37% Center
Bias Distribution
- 38% of the sources lean Left, 37% of the sources are Center
38% Left
L 38%
C 37%
R 25%
Factuality
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