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UK Economy Shows Minimal Growth as OECD Downgrades 2026 Outlook

The Organisation for Economic Cooperation and Development cut the UK growth forecast by 0.5 points to 0.7%, the lowest in the G20, citing flatlining output and rising inflation.

  • The UK economy showed minimal growth of 0.1% in the last quarter of 2025, and the OECD downgraded its GDP forecast for 2026 to 0.7%.
  • The UK's services sector flatlined with zero growth, while production expanded and construction fell in the fourth quarter of 2025.
  • Experts warned that the UK economy is in a vulnerable position heading into the Iran war, with high inflation and cost-of-living pressures expected to weigh on growth.
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Meagre economic growth at end of 2025 confirmed amid fears over Iran war hit

The ONS confirmed unrevised growth of 0.1% between October and December, which followed growth of 0.1% in the previous three months.

·London, United Kingdom
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Seeking Alpha broke the news in United States on Tuesday, March 31, 2026.
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