Bonds & Rates
Home›Bonds & Rates›Economy›UK economy shows resilience through Iran energy shock…
UK economy shows resilience through Iran energy shock in 2026
Deutsche Bank said UK growth in the first half of 2026 was supported by household spending that rose 0.85% in H1-26.
FXStreet highlighted Deutsche Bank Research’s view that the UK economy has been more resilient than expected to an Iran-related energy shock in 2026. The bank points to UK GDP growth of 0.6% quarter over quarter in Q1 and 0.4% quarter over quarter in Q2, which it says helped make the UK the fastest-growing G7 economy so far this year.
Deutsche Bank Research also linked the stronger-than-expected performance to softer inflation, strong household spending, robust business investment, and stockpiling. The bank said it now expects 2026 GDP to potentially exceed its 1.1% forecast.
In its assessment, the bank noted that household spending jumped 0.85% in H1-26, and said summer survey indicators pointed to improving activity, including the August flash composite PMI index rising to 52.5 from 52.2.
Looking ahead, Deutsche Bank said it sees upside risk to its second-half 2026 growth projections, especially around Q3-26, while GDP growth is still tracking at 1.1% for the year. The bank added that recent upside in growth has raised the odds of upward revisions to 2026 GDP forecasts.