UK Economy Bracing for £35bn Hit as Iran War Fallout Looms Large Britain's economic prospects are looking increasingly bleak, with a leading thinktank warning of a £35bn economic hit and a heightened risk of recession this year. The National Institute of Economic and Social Research (Niesr) has issued a stark warning, suggesting that even under the most optimistic scenarios, the UK economy will grow at a significantly slower pace in 2026 and 2027 due to the ongoing conflict in the Middle East. This development adds to the pressure on the Keir Starmer government, which is already grappling with the consequences of the Iran war. As the UK's economic situation becomes increasingly precarious, policymakers will be forced to navigate a complex web of challenges to mitigate the fallout and avoid a recession.
Niesr says even under best-case scenario, economy would grow at slower pace in 2026 and 2027 because of conflictBritain is facing a £35bn economic hit and the risk of a recession this year as the fallout from the Iran war adds to the pressure on Keir Starmer’s government, a leading thinktank has warned.The National Institute of Economic and Social Research (Niesr) said that even under a best-case scenario the UK economy would grow at a much slower pace this year and next because of the Middle East conflict. Continue reading...
