Risk of war in Iran puts G7 's fastest-growing economy at standstill

The risk of a war in Iran could put the G7 's fastest-growing economy at risk of stagnation. Although the UK economy has shown long-awaited signs of recovery, the economic outlook is complicated by the war in Iran and high energy prices. Official data showed the UK economy grew 0.4% in the second quarter, compared with 0.6% in the first quarter. Business investment grew 1.7% over the same period, beating economists 'forecasts for a 0.5% decline. Sanjay Raja, chief UK economist at Deutsche Bank, said the latest data raised the annualized growth rate in the first half of the year to a "hot" 2%. However, the International Monetary Fund warned in April that a war between the United States and Israel with Iran would have a greater impact on Britain's growth prospects. Britain's high dependence on energy prices and the sharp rise in commodity inflation in recent years have put it under greater economic pressure.