The UK economy has defied expectations, recording a 0.7% increase in GDP in the first quarter of 2025 – better than the forecast of 0.6%.
This surge places Britain ahead of economic heavyweights, including the United States, Canada, France, Italy, and Germany.
A key driver of this growth has been the service sector, which demonstrated resilience amid global economic uncertainty. Production also experienced a boost, further solidifying the UK’s standing as an economic force.
Chancellor Rachel Reeves was quick to praise the achievement, citing the government’s commitment to fostering stability and investment.
However, economists are watching closely as Britain navigates potential challenges ahead, particularly in light of the latest global trade tariffs imposed by Donald Trump in April.
These new restrictions could slow growth in the coming months, but for now, the economy is holding firm. However, the UK – U.S. tariff deal is likely to lessen the overall impact and present a further improvement in the second quarter.
With businesses continuing to adapt to shifting market conditions, the UK’s better-than-expected performance is a welcome sign.
Data source: Home – Office for National Statistics
