UK faces biggest hit to growth from Iran war of major economies, IMF says
The financial body cuts its growth forecast for the UK and warns the war threatens to throw the global economy "off course".
Coverage by Political Leaning
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Notable Quotes
"The war in Iran is not our war, but it will come at a cost to the UK."
— Rachel Reeves , Politician
"A small bit of economic pain for weeks was worth it for the security of eliminating the risk of Iran deploying nuclear weapons."
— Scott Bessent , Executive
"Reeves had no one to blame but herself for the size of the IMF's downgrade."
— Sir Mel Stride , Politician
"Countries including the UK should be very cautious about introducing assistance programmes."
— Pierre-Olivier Gourinchas , Academic
"It is hoped that much of this economic shock will be short-lived, provided the conflict does not drag on."
— Lindsay James , Executive
"Tensions remain ratcheted up [despite the ceasefire]... even with any resolution, things are unlikely to go back to normal and we should now have to get familiar with elevated oil and gas prices for the foreseeable future."
— Lindsay James , Executive
"The war in Iran is not our war, but it will come at a cost to the UK. These are not costs I wanted, but they are costs we will have to respond to."
— Rachel Reeves , Politician
"Being handed the biggest downgrade in the G7 is a clear verdict on Rachel Reeves’ choices — and she’s got no one to blame but herself."
— Mel Stride , Politician
"The war in Iran is not our war, but it will come at a cost to the UK."
— Rachel Reeves , Politician
"A small bit of economic pain for weeks was worth it for the security of eliminating the risk of Iran deploying nuclear weapons."
— Scott Bessent , Executive
"Countries including the UK should be very cautious about introducing assistance programmes."
— Pierre-Olivier Gourinchas , Academic
"Reeves had no one to blame but herself for the size of the IMF's downgrade."
— Sir Mel Stride , Politician
Key People
Lindsay James is an investment strategist at Quilter.
Mel Stride is the Shadow Chancellor.
Pierre-Olivier Gourinchas is the chief economist at the International Monetary Fund.
Chancellor who announced guaranteed paid work placements for youth.
Scott Bessent is the Treasury Secretary.
Sir Mel Stride is the Shadow Chancellor of the Exchequer.
Tags
All Coverage
The financial body cuts its growth forecast for the UK and warns the war threatens to throw the global economy "off course".
The IMF has downgraded the UK's 2026 growth forecast to 0.8%, the largest cut among G7 economies, due to the economic impact of the Iran war.
The IMF has downgraded the UK's 2026 growth forecast to 0.8%, citing the economic impact of the Iran war and its inflationary effects.
The IMF has revised the Eurozone's 2026 growth forecast down to 1.1% from 1.4%, attributing the downgrade to the Iran conflict's economic repercussions.
The IMF forecasts the UK will experience the most significant economic shock among advanced economies due to the Iran war, with growth downgraded to 0.8% in 2026.
The IMF warns that the Eurozone's growth will slow this year and inflation will surge, even if the Iran conflict is resolved by mid-year.
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