Could the Iran war put the UK into a recession in 2026?
The International Monetary Fund warns that the Iran war could lead to a global recession, with the UK facing a significant economic downturn in 2026. The UK's economic growth forecast has been slashed, and inflation is expected to rise.
The UK's economy is at risk of recession in 2026 due to the ongoing Iran war, according to the International Monetary Fund (IMF). The IMF has warned that the conflict could lead to a global recession, with the UK facing the biggest downgrade to growth among the G7 countries. The UK's economic growth forecast for 2026 has been reduced to 0.8%, down from 1.3% in January. Inflation is expected to rise to nearly 4% in the second half of 2026, exceeding the Bank of England's 2% target. The UK's GDP grew by 0.5% in February, but this may not be enough to offset the impact of the war. British Chancellor Rachel Reeves has acknowledged that the conflict will come at a cost to the UK.
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