Stories

Thu, 16 Apr 2026

Thu, 16 Apr 2026 UK economy grew faster than expected in February ahead of Iran war

The economy saw its biggest monthly rise in more than two years just before the outbreak of the US-Israeli war with Iran.

*0.5% growth in February, beating expectations
*Services sector grew by 0.5%, production output and construction also increased
*GDP grew by 0.5% in the three months to February, up from 0.3% in January
*However, experts warn that energy shock and inflation could lead to global recession
*International Monetary Fund (IMF) cuts UK growth forecast for this year to 0.8%
*Banks pull hundreds of mortgage deals as interest rates rise
*Economists say economy is still "pretty stagnant" despite February's growth