Middle East conflict increases longstanding challenges on retail and hospitality businesses

The Middle East conflict is forecast to weigh on the UK economy and exacerbate long-standing challenges for retail and hospitality businesses. A potential closure of the Strait of Hormuz could significantly reduce UK GDP growth, and rising energy prices coupled with a maintained Bank Rate will negatively impact the economy. Government efforts to bolster industrial competitiveness are underway, but addressing structural challenges will take time.