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In 2025, UK GDP grew by 1.4 percent and is expected to grow by *** percent in 2026. In 2027 and 2028, the economy is forecast to grow by *** percent, and then by *** percent in 2029 and 2030. The sudden emergence of COVID-19 in 2020 and subsequent closure of large parts of the economy were the cause of the huge *** percent contraction in 2020, with the economy recovering somewhat in 2021, when the economy grew by ***±è±ð°ù³¦±ð²Ô³Ù.Ìý

Impact of the Iran War

Even before the start of the Iran War, the UK's economic performance for the year had consistently been downgraded. In addition to this, however, the UK is predicted to suffer the most from the Iran War, seeing a further *** percent chalked off its growth for the year and inflation increasing by *** percent more than anticipated. There are signs that UK households are already feeling the impact, with ** percent of Brits noticing increasing living costs in April. 

Long-term growth problems

In the last two quarters of 2023, the UK economy shrank, plunging the UK into recession for the first time since the COVID-19 pandemic. Even before that last recession, however, the UK economy has been struggling with weak growth. Poor productivity along with low levels of business investment are some of the reasons for this malaise. The underperformance of the rest of the UK outside of London has also been a long-term issue that governments have struggled to address.