THE UK economy grew unexpectedly in the first month of the Iran war, official figures show.

GDP – which is the total value of all goods and services produced in a country – grew by 0.3% in March, according to the Office for National Statistics (ONS).

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Economists had been predicting a contraction of 0.2%.

The data also showed the economy had grown by 0.6% in the first three months of the year.

Chancellor Rachel Reeves said it was a sign the Government has the “right economic plan”.

“The choices I have made as chancellor mean our economy is in a stronger position as we deal with the costs of the war in Iran,” she said.

She warned it is now “not the time to put our economic stability at risk” and said this would “leave families and business worse off”.