UK Economy Shows Surprising Resilience Amid War and Unrest

The UK economy showed surprising resilience in the second quarter of 2026, despite domestic political unrest and fallout from the US-Iran war.

Gross Domestic Product (GDP) growth cooled to 0.4 percent in April-June after expanding by 0.6 percent in the first quarter, according to data released by the Office for National Statistics (ONS).

The slowdown was attributed to elevated inflation, which has been exacerbated by the energy costs soaring due to the US-Iran war.

However, the services sector continued to drive growth, expanding by 0.5 percent in the second quarter, while construction also grew and production flattened.

The recent football World Cup contributed to an increase in turnover for businesses in industries such as food and beverage serving activities, publishing, television production, and advertising.