economy
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.