UK economic growth in February better than forecast before Iran war

The UK economy grew at its fastest pace for more than two years in February in a better-than-expected start to 2026, official figures have shown.

The Office for National Statistics (ONS) said gross domestic product (GDP) grew by 0.5% month-on-month in February – the fastest expansion since January 2024 – following upwardly revised growth of 0.1% in January.

Most economists had forecast GDP to rise by just 0.1% in February, while the ONS had previously estimated no growth in January.

But the figures come amid forecasts that Britain’s output will be hardest hit this year by the fallout from the Iran war and soaring energy costs.

A stark economic outlook report from the International Monetary Fund (IMF) earlier this week that showed the UK facing the biggest downgrade to growth among the G7 group of countries, with 0.8% forecast for 2026, down sharply from the 1.3% predicted in January.