Responding to the latest GDP data published on 16th April 2026 by the Office for National Statistics, David Péna, International Trade Manager at Chambers Wales, South East, South West and Mid, said:

“The fact that GDP has seen an of 0.5% in the three months to February demonstrates that the UK economy performed better than expected at the start of the year, with signs that momentum was building. 

 “One thing to bear in mind though, is that this data predates the Iran conflict, so the full impact of the energy and shipping shocks has yet to come through. Economic forecasts are being downgraded – and more generally, we are now expecting just 1% growth for 2026, and the Internatiional Monetary Fund (IMF) this week warned the UK will be the hardest hit of the G7 countries. 

 David added: “Members have told the British Chambers of Commerce that cost pressures remain the top constraint for most companies. Its latest survey found that 73% cite labour costs and 52% deem energy costs as price drivers, and that was even before the escalation in the Middle East. For past two years, the BCC survey report that more SMEs are cutting back investment than increasing it. 

 “In the short term, de-escalation and rapid recovery to supply chains is the only way to prevent a deeper economic crisis. Longer term, the UK will only break out of this low-growth trap by unlocking investment, boosting exports, and harnessing the potential of AI.”