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  "path": "/2026/04/14/iran-war-will-knock-uk-hardest-worlds-top-economies-27974005/",
  "publishedAt": "2026-04-14T13:21:36.000Z",
  "site": "https://metro.co.uk",
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    "News",
    "Politics",
    "Economy",
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    "Add Metro as a Preferred Source on Google\nAdd as preferred source"
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  "textContent": "To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5\n\t\t\t\t\t\t\t\tvideo\n\nUp Next\n\nPrevious Page\n\nNext Page\n\nThe UK will suffer the worst damage from the war in Iran out of all the world’s advanced economies, according to a new report from the International Monetary Fund.\n\nGrowth forecasts for the next two years have been slashed compared to those from before the war began at the end of February.\n\nInflation in the UK is also set to be higher than previously expected, as the IMF says the global economy could be knocked ‘off course’ by the conflict.\n\nReacting to the new World Economic Outlook, Chancellor Rachel Reeves said the Iran war is ‘not our war’, but it will nevertheless ‘come at a cost to the UK’.\n\nShe added: ‘These are not costs I wanted, but they are costs we will have to respond to.’\n\nAccording to the IMF forecast, growth in the UK will be 0.8% in 2026, down from 1.3% the last time the international body issued a prediction in January.\n\n##  Want to understand more about how politics affects your life?\n\nMetro's senior politics reporter Craig Munro breaks down all the chaos into easy to follow insight, in **Metro** 's politics newsletter Alright, Gov? Sent every Wednesday. Sign up here.\n\nThat 0.5% drop is the largest in the G7 group of nations, though the updated figure is still higher than the predicted growth for Italy and Japan.\n\nInflation in the UK is also set to be the joint highest for the next two years – tying with the US on 3.2% this year, and with Italy on 2.4% in 2027.\n\nThe Bank of England’s target rate for inflation is 2%.\n\nIn its report, the IMF predicts UK inflation will head towards 4% this year before falling back to the target by the end of 2027.\n\nShadow Chancellor Sir Mel Stride said Reeves has ‘no one to blame but herself’ for the downgrade in growth.\n\nHe said: ‘Her “plan” to keep costs down has left us with the highest inflation in the G7, with businesses closing and the cost of living skyrocketing.’\n\nIn an interview with the Mirror today, Reeves said she felt ‘very frustrated and angry’ with the US for going to war ‘without a clear exit plan, without a clear idea of what they were trying to achieve’.\n\nLast month, the Institute of Grocery Distribution (IGD) said the average UK household could be spending £340 more on food and drink this year due to the impact of the Iran war.\n\nIn the event of a ‘moderate energy price shock’, the industry body forecast average food inflation would hit 4.8% – but an ‘intense energy price shock’ could kick it up to 6.4%.\n\nFor an average UK household with an annual grocery bill of £5,283, the latter scenario would mean an increase of £338 a year.\n\nA spokesperson for the IGD told **Metro** their predictions remain unchanged ‘for now’ as hopes that the ceasefire will lead to an end to the energy crisis fade, but added they ‘are closely monitoring the situation’.\n\nThey added: ‘A more drawn‑out or escalating conflict, particularly one that materially disrupts energy flows or shipping routes, could increase the likelihood that inflation outcomes move closer to our more severe scenarios.’\n\n**Got a story? Get in touch with our news team by emailing us atwebnews@metro.co.uk.** **Or you can submit your videos and pictures here.**\n\n**For more stories like this, check our**  news page**.**\n\n**Follow Metro.co.uk on Twitter and Facebook for the latest news updates.** **You can now also get Metro.co.uk articles sent straight to your device. Sign up for our daily push alerts here.**\n\nComment now Comments \nAdd Metro as a Preferred Source on Google\nAdd as preferred source\n",
  "title": "Iran war ‘will knock UK hardest out of all the world’s top economies’"
}