UK Economy Shows Resilience Amid Iran War, but Regional Disparities and Cost Pressures Persist

The UK economy grew by 0.4% in the second quarter of 2026, slowing from 0.6% in the first quarter, according to official figures. The growth was partly boosted by hot weather and the men's football World Cup in June, but analysts warn that the impact of the Iran war, including rising energy costs, could weigh on growth in the coming months. Despite the slowdown, the UK maintained its position as the fastest-growing economy in the G7 in the first half of 2026, with consumer spending and business investment remaining resilient.