UK Economy Defies Forecasts, but Will Growth Last? The news that the UK economy grew by 0. 4% in July has provided a welcome respite from the turmoil caused by the Iran war.
However, scratch beneath the surface and it's clear that this growth is fragile at best. City economists had forecast zero growth, adding to the sense of surprise – and perhaps even a hint of relief.
The UK government's borrowing costs have surged to their highest level in almost two decades, with the global oil price well above $100 a barrel.