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UK Economy Struggles: Growth Forecast Cut Amid Rising Inflation

4/1/2026

28 4 Full Breakdown

Summary

Story summary

Britain's economy grew 0.1% in both Q3 and Q4 2025, signaling very weak momentum.
The OECD cut its 2026 growth forecast for Britain to 0.7%, the largest cut among G20 economies.
Inflation is projected to reach 4% in 2025, driven by the Iran war and higher energy prices.
Experts warn continued conflict could deepen weakness, risking stagnation or recession and affecting growth and jobs.

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Story summary

Britain's economy grew 0.1% in both Q3 and Q4 2025, signaling very weak momentum.
The OECD cut its 2026 growth forecast for Britain to 0.7%, the largest cut among G20 economies.
Inflation is projected to reach 4% in 2025, driven by the Iran war and higher energy prices.
Experts warn continued conflict could deepen weakness, risking stagnation or recession and affecting growth and jobs.