UK economy grew faster than expected before Iran war

The Office for National Statistics (ONS) said the UK economy grew better than expected in February before the start of the Iran war.

The ONS said gross domestic product (GDP) grew by 0.5 per cent month-on-month in February, the fastest growth since January 2024, following upwardly revised growth of 0.1 per cent in January.

While most economists predicted GDP would rise by just 0.1 per cent in February, the ONS had previously predicted no growth in January.

Economists polled by Reuters had predicted that gross domestic product would increase by 0.2 percent in the December-February period compared to the previous three months.

But the figures come amid predictions that Britain’s output will be hit hardest this year by the effects of the Iran war and rising energy costs.

The International Monetary Fund’s (IMF) stunning economic outlook report published earlier this week showed that the UK faces the biggest decline in growth among the G7 group of countries; The 2026 forecast was 0.8 percent, down sharply from the 1.3 percent forecast in January.

At least one recent gloomy forecast said Britain was heading for “stagflation” as energy prices fell and inflation rose as a result of the Iran war.

More to follow…