UK Economic Growth Forecast for 2026 Lowered Due to Middle East Conflict

Economists at Pantheon Macroeconomics have revised the UK's economic growth forecast for 2026 from 0.9% to 0.5%, citing the ongoing Middle East conflict as a significant factor. According to Jin10, the economists noted that there are currently no signs of the conflict ending soon, which adds uncertainty to its overall impact on global growth and inflation. They suggest that the risks are skewed towards lower growth and higher inflation for the UK. Additionally, the institution has raised its UK inflation forecast for 2026 from 2.6% to 3.3%.