{
  "id": 19655915,
  "title": "AI helped UK defy expectations – but will economy’s resilience fizzle out?",
  "url": "https://urgent.news/2026/11/12/ai-helped-uk-defy-expectations-but-will-economys-resilience-fizzle-out",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-12T13:08:12.000Z",
  "source": {
    "name": "Guardian Business",
    "slug": "guardian-business",
    "url": "https://www.theguardian.com/business/2026/nov/12/ai-uk-economy-john-healey"
  },
  "original_language": "en",
  "account": "The UK economy grew at its fastest pace in over two years in the third quarter, defying predictions from global economic analysts. Chancellor John Healey inherited a challenging economic environment when he took office in July, with growing concerns over the war in the Middle East, rising inflation, and slowing global growth. To his surprise, the economy expanded by 0.7% in the final quarter of 2022, putting the UK on track to become the second-fastest growing economy among the Group of Seven nations.\n\nHealey's optimism was bolstered by data showing that households continued to spend, and business investment surged, with the technology sector playing a crucial role. The IT and professional services sectors together accounted for nearly half of the economic growth. Deutsche Bank estimates that AI-related spending added between 0.3% and 0.4% to GDP growth this year, suggesting that the UK economy's strength lies in its embrace of artificial intelligence.\n\nHowever, the UK's economic resilience may be short-lived. The IT boom and AI-related spending may face headwinds in the coming months. A slowdown in AI investment, coupled with the potential for a stock market bubble burst, could dampen the economy's growth trajectory. Furthermore, both of the UK's growth engines are facing increasing uncertainty. AI-related spending is expected to face a slowdown after the recent tech stock market volatility, and the Federal Reserve's upcoming interest rate hikes to combat inflation could negatively impact the UK's economy.\n\nWhile the UK economy appears to be defying expectations, households can expect a difficult winter ahead. Energy bills are projected to rise by about a quarter in January, with the average annual household gas and electricity bill expected to exceed £2,000. Recent data suggests that retail sales and consumer spending have weakened, and real wage growth is cooling. Inflation is also on track to reach a peak of nearly 5% next year. With interest rates expected to rise, the UK economy may face further challenges as the Bank of England attempts to control imported inflation. As Chancellor Healey prepares to present his budget, the resilience of the UK economy remains a topic of much debate.",
  "summary": "Despite John Healey’s defiance, the economy faces threats from a tech slowdown and energy bills this winter AI helps UK economy grow at fastest pace for more than two years The forecasters were clear when John Healey became chancellor in July: Britain’s resilience to the war in the Middle East would not last. The global economic headwinds were too strong, inflation was beginning to rise and…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}