Displaying items by tag: GDP growth

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.