One Hack, Minus GDP: Losses from the JLR Attack Become a Main Cause of UK Economic Slowdown
The Jaguar Land Rover shutdown led to a chain reaction in related industries.
The British economy shrank again in September, largely driven by the aftermath of a cyberattack on automaker Jaguar Land Rover (JLR) and the forced halt of its operations. A new report from the UK's Office for National Statistics (ONS) records a 0.1% contraction in GDP and simultaneously revises August's data—from the previously reported 0.1% growth to a flat zero.
As a result, the country's economy grew by only 0.1% in the third quarter, significantly lower than the growth rates at the start of the year, which reached 0.7%. Other G7 nations are showing similarly weak performance—Germany, Italy, and Canada reported stagnation or minimal GDP growth in the range of 0–0.1%.
According to Treasury Chancellor Rachel Reeves, the situation in the second half of the year requires "decisive but fair decisions" to strengthen the economy and reduce the cost of living. She will present her second budget in two weeks, promising to focus on measures aimed at reducing national debt and improving the efficiency of the healthcare system.
The ONS report also includes the impact of the crisis at Jaguar Land Rover, which the cyber monitoring center classified as a "Category 3 systemic event." Due to the forced shutdown and the chain reaction in related industries, UK car production fell by 29%, reducing the overall GDP figure by 0.17 percentage points.
Even excluding the automotive sector, the economy remains sluggish. Ruth Gregory, Deputy Chief Economist at Capital Economics, noted that growth continues to be constrained by high taxes and weak external demand. In her assessment, planned tax increases, set to take effect after the upcoming budget, could further reduce GDP by about 0.2% in 2026, making the prospects for accelerated growth extremely limited.
