{
    "success": true,
    "data": {
        "id": 1680376,
        "msgid": "imf-says-uk-economy-hit-hardest-by-iran-war-why-1776304250",
        "date": "2026-04-16 08:18:00",
        "title": "IMF Says UK Economy Hit Hardest by Iran War, Why?",
        "author": "Sakina Rakhma Diah Setiawan",
        "source": "KOMPAS",
        "tags": "",
        "topic": "Economy",
        "summary": "The IMF has slashed its growth forecast for the UK economy to 0.8% in 2026, the largest cut among G7 nations, primarily due to geopolitical tensions from the Iran war driving up energy prices. As a net energy importer, the UK is particularly vulnerable to global oil price shocks, exacerbating limited expectations for interest rate cuts and persistent inflationary pressures projected at 3.2% this year. UK Chancellor Rachel Reeves acknowledged the unavoidable economic costs, while IMF Chief Economist Pierre-Olivier Gourinchas warned of constrained fiscal space amid a global growth slowdown to 3.1%.",
        "content": "<p>LONDON \u2013 Geopolitical tensions in the Middle East stemming from the\nIran war are deemed to be pressuring global economic prospects, with the\nmost significant impact on UK growth compared to other advanced\neconomies.<\/p>\n<p>The International Monetary Fund (IMF) in its April 2026 World\nEconomic Outlook report, published on Tuesday (14\/4\/2026), has cut its\nUK economic growth projection to just 0.8% in 2026, down from the\nprevious estimate of 1.3%.<\/p>\n<p>This revision is the largest among G7 countries.<\/p>\n<p>The institution assesses that the pressure on the UK economy stems\nnot only from the conflict but also from more limited expectations for\ninterest rate cuts and the lingering effects of rising energy\nprices.<\/p>\n<p>The IMF describes the UK as one of the countries most vulnerable to\nenergy price surges due to its status as a net energy importer. This\nmakes the nation\u2019s economy highly sensitive to global oil price\nvolatility triggered by the conflict.<\/p>\n<p>Additionally, the IMF forecasts that UK inflation will be among the\nhighest in the G7. Inflation is projected to reach 3.2% this year and\n2.4% in 2026, equivalent to the US over the same period.<\/p>\n<p>This aligns with the easing of energy price hike impacts and slowing\nwage growth due to a weakening labour market.<\/p>\n<p>In response to the projections, UK Chancellor Rachel Reeves stated\nthat the Iran conflict would bring economic consequences for her\ncountry.<\/p>\n<p>\u201cThe war in Iran is not our war, but it will bring costs to the UK.\nThis is not a cost I want, but it is a cost we must address,\u201d Reeves\nsaid, quoted from BBC on Thursday (16\/4\/2026).<\/p>\n<p>\u201cThere is not much room to increase spending to support households\nand businesses,\u201d said Gourinchas.<\/p>\n<p>He added that if aid policies are implemented, they must remain\nwithin existing budget limits.<\/p>\n<p>Globally, the IMF estimates world economic growth at around 3.1% this\nyear, down from 3.4% in 2025. Gourinchas described this revision as a\n\u201csignificant downgrade\u201d.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/imf-says-uk-economy-hit-hardest-by-iran-war-why-1776304250",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}