Displaying items by tag: GDP growth

The UK economy grew by just 0.1% in the final quarter of 2025, below the 0.2% forecast by many economists, according to the Office for National Statistics. The figure mirrors growth in the previous quarter, reinforcing concerns that the economy remains sluggish. The services sector showed no growth, manufacturing provided the main boost, and construction recorded its weakest performance in over four years. If measured per head of population – a clearer indicator of living standards – output declined across the second half of the year. Although overall growth for 2025 slightly exceeded that of 2024, unemployment has risen to 5.1%, and small businesses report pressures comparable to the Covid period. Investment is reportedly restrained by higher employment costs and global uncertainties, including international trade tensions. Rachel Reeves defended the Government’s economic plan, highlighting falling inflation and interest rate cuts. However, economists warn that policy clarity and stable foundations are essential if growth is to strengthen meaningfully in 2026.

The UK economy grew by 0.7% in the first quarter of 2025 - its fastest quarterly growth in over a year - beating Bank of England predictions. Growth was driven by strong performance in the services sector, especially retail, IT, advertising, and car leasing. Manufacturing also saw a 1.1% rise, while construction remained flat. Compared to last year, the economy is now 1.3% larger. Export activity also surged, with a 3.5% jump as traders raced to beat looming US tariffs. Despite this strong start, economists warn the momentum may be short-lived due to domestic tax increases and international trade pressures. Some of the early-year growth appears to have been brought forward ahead of rising business costs. While consumer confidence and easing interest rates offer hope, the Bank of England believes underlying growth may still be weak. The government remains cautiously optimistic, pointing to rising wages and a stronger-than-expected recovery, yet future growth may depend on global stability and wise economic governance.