Iran war will hit UK growth the hardest of any rich economies, IMF says
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The International Monetary Fund (IMF) has warned that the UK will suffer the biggest hit to growth of all the world's richest economies due to the Iran war. The IMF projected that the UK economy will grow by just 0.8% in 2026, down from 1.3% in 2025, with global growth likely to be around 3.1% this year.
The IMF has warned that the UK economy will be hit the hardest by the Iran war. The UK is projected to grow by 0.8% in 2026, down from 1.3% in 2025. Global growth is expected to be around 3.1% this year, a significant downgrade from 3.4% in 2025. The IMF cited the ongoing war in the Middle East as a major test for the global economy. A protracted conflict could further worsen the outlook, with growing public debt and eroding institutions' credibility posing additional risks.
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