UK economy grew just 0.5% in February in wake of Iran war chaos | World | News
Rachel Reeves’s role in trying to revive Britain’s stagnant economy has also been highlighted by new figures from the Office for National Statistics showing growth rose by 0.5% in February, after recording no growth in the previous month.
The latest data follows figures showing the UK economy was flat in January, even before conflict flared in the Middle East, and concerns about rising inflation as a result of the rise in oil prices. Official figures showed zero growth in gross domestic product (GDP) in the first month of 2026, despite expectations that production would increase by 0.2%.
At the time, economists warned that a protracted conflict and a continued rise in oil prices (above US$100 for the first time in nearly four years) could even send the economy into reverse by 2026.
January’s figures follow weak growth of just 0.1% in the last three months of last year, due to budget uncertainty and a weak performance in December, while there was also growth of 0.1% in December.
Speaking in Washington on Wednesday, Chancellor Rachel Reeves expressed concern about Donald Trump’s war against Iran, calling it a mistake.
He said: “We are net importers of gas, which means we are affected by the conflict in the Middle East, so I am sending this message loud and clear, along with 10 other countries. “If this conflict ended, our growth would be higher and inflation would be lower, and that will only happen as tensions ease.”
