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UK economy records surprise 0.3% growth in first month of the Iran war
Services, construction and manufacturing lifted output as economists warned the Iran war could slow growth later this year.
- The Office for National Statistics reported Thursday that the British economy grew 0.6% in the first quarter, matching economist expectations, with March Gross Domestic Product rising 0.3% led by services sector gains.
- Amid the Iran war, global energy supply chains face severe strain because around 20% of world oil and gas transits the Strait of Hormuz, driving up fuel costs for the UK economy.
- Prime Minister Keir Starmer faces leadership challenges from over 90 Labour MPs calling for his resignation, while bond market borrowing costs for the 10-year gilt rose to over 5% earlier this week.
- Chancellor Rachel Reeves urged Labour MPs not to destabilize the economy, stating "Now is not the time to put our economic stability at risk." She emphasized the government "has the right economic plan."
- The Bank of England is expected to hike interest rates this year, though Ruth Gregory, deputy chief UK economist at Capital Economics, warned that Q1 growth "will be the high point for the year" as Iran war effects dampen future quarters.
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UK expected to have fastest economic growth of G7 nations so far in 2026
The UK economy is expected to have the fastest economic growth of the G7 nations at the start of 2026. On Thursday, the latest figures from the Office for National Statistics showed the economy had seen strong growth in the first quarter of the year. From January-March, UK GDP per head grew by 0.6%, even when taking into account the first month of the Iran War. READ NEXT: While Reform shout at cricket bats, Labour is quietly fixing the country T…
·London, United Kingdom
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Coverage Details
Total News Sources42
Leaning Left8Leaning Right4Center7Last UpdatedBias Distribution42% Left
Bias Distribution
- 42% of the sources lean Left
42% Left
L 42%
C 37%
R 21%
Factuality
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