UK economy grew by 0.1% in May despite impact of Iran war | Economic growth (GDP)

Official figures show the UK economy grew by 0.1% in May despite the impact of the Iran war on energy costs.

The Office for National Statistics said GDP rose after falling 0.1% in April. The figures were in line with the 0.1% increase that economists had predicted in May.

Despite April’s decline, the economy appears more resilient in the face of the Middle East conflict than some analysts feared.

The International Monetary Fund recently raised its forecast for the UK’s full-year GDP growth to 1%, up 0.2 percentage points from its April forecast.

However, the UK’s economic outlook remains highly uncertain and oil prices have risen sharply again since the resumption of hostilities in the Middle East this week; This underlines the economic difficulties facing Andy Burnham as he takes over the leadership of the Labor Party.

The Resolution Foundation thinktank has estimated that more than half of the £23.6bn “headroom” left by outgoing chancellor Rachel Reeves in her spring statement against her fiscal rules will be wiped out by the effects of war.