- The UK economy grew by a better-than-expected 0.5 per cent in February, according to the Office for National Statistics (ONS).
- This growth follows an upward revision of January's figures to 0.1 per cent, exceeding most economists' predictions for February.
- Despite the positive short-term data, the UK's economic prospects for the year are dampened by the potential impact of the Iran war and rising energy costs.
- The International Monetary Fund (IMF) recently downgraded its UK growth forecast for 2026 to 0.8 per cent, a substantial reduction from 1.3 per cent, representing the largest downgrade among G7 countries.
- Some forecasts indicate that Britain could be heading for 'stagflation' as energy prices climb and inflation increases due to the conflict in Iran.
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