RBC Capital Markets
May 14, 2026
UK GDP Q1 2026
Market ReportMacro Economic IndicatorsRates Govt BondsOther
The UK economy grew 0.6% in Q1 2026, but RBC analysts expect a sharp slowdown to 0.1-0.2% growth for the remainder of the year.
Key Takeaways
- 1.UK GDP expanded by 0.6% q/q in Q1 2026, matching consensus expectations after recent adjustments.
- 2.The Q1 growth pace is expected to slow significantly in the subsequent quarters of 2026 to 0.2% in Q2 and 0.1% in Q3.
- 3.Inflation stemming from the Iran conflict is expected to erode real wage growth and weigh on future economic performance.
Table of Contents
- Q1 pace of expansion unlikely to last
- Sales Literature and Market Commentary Disclaimer
- Disclaimer for OTC Derivatives
- Sales Note Disclosures Under the Market Abuse Regime
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Authors
Cathal Kennedy
Themes
Post-Budget Economic Pick-upGeopolitical Energy ShocksData Quality/Seasonal Adjustment
Regions
UKUnited Kingdom
