Iran war will hit UK growth the hardest of any rich economies, IMF says
The IMF said that the U.K. will be hardest hit out of all developed economies as a result of the Iran war.
TL;DR
- The UK is projected to suffer the largest economic growth hit of all developed economies due to the Iran war.
- IMF forecasts U.K. economic growth at 0.8% in 2026, a significant downgrade from previous projections.
- Global growth is expected to be around 3.1% in 2026, with inflation forecast to rise to 4.4%.
- Central banks have limited ability to counter the supply shock from the war, which affects oil prices.
- A prolonged conflict could lead to a worst-case scenario of 2% global growth and 6% inflation.