UK Lowers 2026 Growth Forecast Amid Iran War and Rising Energy Prices

The UK government, led by Finance Minister Rachel Reeves, has lowered its 2026 economic growth forecast from 1.4% to 1.1%, citing risks from the escalating Iran war and rising energy prices. Reeves emphasized the importance of economic stability amid global uncertainty, highlighting falling inflation and interest rate cuts. Economists warn the conflict could increase inflation, depress growth, and raise debt. The government plans to maintain fiscal discipline and pursue policies to support investment and reduce youth unemployment despite these challenges.