UK faces biggest hit to growth from Iran war of major economies, IMF says

The IMF has cut its growth forecast for the UK to 0.8% this year, down from 1.3%, due to the Iran war and rising energy prices. As a net energy importer, the UK is particularly sensitive to rapid price increases. Despite this downgrade, the IMF expects a recovery, with growth projected at 1.3% next year, and notes that inflation is expected to temporarily rise to 4% this year before returning to target by the end of 2027.