AI drives UK to second‑fastest G7 growth despite looming tech and energy challenges

The Guardian reported that artificial intelligence has helped the United Kingdom post its strongest quarterly expansion in more than two years. In the third quarter, the economy grew by 0.7%, making it the second‑fastest growing member of the G7 this year. The surge comes four months after John Healey took over as chancellor in July, a period when forecasters warned that Britain’s resilience to the war in the Middle East would not endure. They cited global economic headwinds, rising inflation and a slowdown in growth as likely threats. Despite those warnings, the economy has continued to defy expectations. The outlet added that the recovery faces new risks from a potential technology slowdown and higher energy bills this winter, which could test the durability of the current momentum.

Why it matters

The report highlights how AI‑driven growth is offsetting broader economic pressures, offering a brief window of optimism for the UK’s fiscal outlook.

Key details

Location

United Kingdom · Europe

Reported by

The Guardian

First reported

12 Nov 2026, 18:07 IST

Key names

AI, UK, Britain, Despite John Healey

Section

Business

Figure cited

Four months into the job, the economy is continuing to defy expectations after growing by 0.7% in the third quarter – the fastest expansion in two and a half… (The Guardian)

Sources

This is an independent summary. Read the full, original reporting from the publisher:

• The GuardianAI helped the UK defy expectations – but will Britain’s resilience fizzle out? 12 Nov, 18:07

Read the full story at The Guardian ↗

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