UK economy slows amid political unrest, Mideast war

UK economy slows amid political unrest, Mideast war

LONDON
UK economy slows amid political unrest, Mideast war

A partial solar eclipse is seen above the Houses of Parliament in London, Wednesday. Aug. 12, 2026. (AP Photo/Kin Cheung)

Britain’s economic growth slowed in the second quarter compared with the first three months of the year, official data showed on Aug. 13, as the country faced political unrest at home and fallout from the Middle East war.


Gross domestic product increased 0.4 percent in the April-June period after an expansion of 0.6 percent in the first quarter, the Office for National Statistics said in a statement.


Keir Starmer resigned as prime minister in late June and was replaced around one month later by Andy Burnham, as the Labour government was overtaken in opinion polls by the hard-right party Reform UK.


Following Aug. 13's data, the country’s new finance minister, John Healey, said that under Burnham, Labour was a “hands-on government, putting British interests first, giving breathing space to those feeling the strain, making our country more resilient and bringing hope back.”


Struggling already with elevated inflation, millions of Britons have seen the situation worsen after the U.S.-Iran war sent energy costs soaring.


“I know people are worried about the impact of the conflict in the Middle East on their cost of living, which has been too high for too long and it has added pressure on British businesses,” Healey said in his statement.


The latest GDP data showed that output from the services sector grew 0.5 percent in the second quarter, and construction also expanded while production flattened.


“Growth [overall] slowed in the second quarter of the year, following a strong start to 2026, but remained relatively robust,” said ONS director of economic statistics, Liz McKeown.


“Services were once again the main driver of growth,” she added.

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