US EditionUK faces biggest hit to growth from Iran war of major economies, IMF says
The IMF said the energy shock will push UK inflation to 3.2% this year and lift unemployment to 5.6%, adding pressure on households.
- The UK faces the largest downgrade in economic growth among major economies due to the Iran conflict's impact on energy prices, with GDP growth forecast at 0.8% in 2026 and 1.3% in 2027, down from previous estimates of 1.3% and 1.5% respectively.
- The IMF predicts UK inflation will rise towards 4% in the coming months, roughly double the Bank of England's target, driven by higher energy costs and the conflict's effects.
- Severe conflict scenarios linked to the Iran war could cause global growth to shrink by about 1.3 percentage points in 2026, making a global recession a close possibility due to energy supply disruptions.
- UK officials acknowledge the economic costs of the conflict and the need for a responsible response, while criticism exists regarding government handling contributing to inflation and economic challenges.
33 Articles
33 Articles
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Which Economy Suffers Most From Iran War Fallout
The U.K. economy is expected to take the hardest hit among advanced economies due to the Iran war, according to the International Monetary Fund’s latest outlook. The IMF projects U.K. growth will slow to 0.8% in 2026, down from 1.3% in 2025, reported by the IMF. This marks the steepest downgrade among G7 nations, with the U.S. forecast at 2.3% and the euro area at 1.1%. Iran war will hit UK growth the hardest of any rich economies, IMF says http…
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
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