UK economy grew 0.6 percent in first quarter of 2026

The British economy expanded by 0.3% in March and 0.6% over the first quarter, exceeding economist expectations. Despite the strong start, analysts warn that higher energy prices and potential interest rate hikes due to the Iran war could trigger a mild recession later this year.

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The United Kingdom economy grew 0.6% in the first quarter, exceeding forecasts despite the escalating conflict in Iran. March GDP rose 0.3% month-on-month, beating the 0.2% contraction predicted by a Reuters poll of economists. Investors face potential volatility as seasonal data distortions and rising energy costs cloud the outlook for interest rates.

Seasonal Distortions Mask Recession Risks

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