UK economy grows faster than expected in February despite looming Iran war impact

The UK economy expanded by 0.5% in February, surpassing expectations, according to official data from the Office for National Statistics (ONS).

This growth follows a revised figure for January, which showed a 0.1% increase, up from an initial estimate of no growth.

These figures reflect economic activity before the outbreak of the US-Israeli war with Iran on 28 February.

The conflict has since triggered a significant energy shock, raising concerns about its potential to disrupt global economic stability.

The International Monetary Fund (IMF) has responded by lowering its growth forecast for the UK, identifying it as the most vulnerable among advanced economies to the ongoing crisis.

The IMF warns that a prolonged conflict could push the global economy off course.

Bank of England officials have highlighted the challenges posed by the energy shock, with the governor describing upcoming interest rate decisions as "very very difficult".

The situation complicates monetary policy amid uncertain economic conditions.

The impact of rising energy costs is already being felt by businesses, with reports from a Hereford-based company indicating annual energy expenses of approximately £250,000.

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