"The UK economy unexpectedly expanded by 0.5% in February, suggesting it had gained momentum before the conflict began, contrary to forecasts of just a 0.1% expansion."
"With oil and gas prices soaring as a result of the effective closure of the strait of Hormuz, economists have downgraded forecasts for UK growth in 2026."
"Surveys have shown business and consumer confidence declining sharply, and investors believe interest rates could have to rise to restrain the inflationary impact of the war."
"Rachel Reeves expressed her frustration at the likely economic impact of the conflict, stating it had been a mistake during her address in Washington."
The UK economy experienced a surprising 0.5% growth in February, contrary to expectations of only 0.1%. This growth momentum was noted before the onset of conflict in the Middle East, which has since led to a decline in business and consumer confidence. Rising oil and gas prices due to the closure of the strait of Hormuz have prompted economists to lower growth forecasts for 2026. Concerns about inflation may lead to increased interest rates as a response to the economic impact of the war.
Read at www.theguardian.com
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