UK economic output jumps ahead of Mideast war
- UK gross domestic product growth climbed to 0.5 percent in February compared with expansion of 0.1 percent in January
LONDON: Britain’s economy grew much stronger than expected in February, prior to the start of the Middle East war, official data showed Thursday ahead of a likely hit from the US-Iran conflict.
UK gross domestic product growth climbed to 0.5 percent in February compared with expansion of 0.1 percent in January, the Office for National Statistics said in a statement.
Analysts’ consensus forecast had been for GDP growth of 0.1 percent in February, while Britain’s output ahead is expected to suffer from soaring energy prices caused by the war.
February’s data is an unexpected boost for the government led by Prime Minister Keir Starmer, as his Labour party is forecast to suffer heavy losses in local elections due next month at the hands of hard-right Reform.
The International Monetary Fund has meanwhile sharply downgraded its forecast for Britain’s economic performance this year due to the war in the Middle East.
The IMF said its economy would now likely grow 0.8 percent in 2026, compared to the Fund’s estimate of 1.3-percent expansion published in January.
British finance minister Rachel Reeves on Tuesday hit out at the “folly” of US President Donald Trump launching a war with Iran “without a clear exit plan”.
Yet unlike other countries, Britain has not announced measures to support households grappling with the rise in the cost of fuel – up by significant amounts since the war began on February 28.
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