UK economy grows more than expected, according to official figures

He’s now asked if you can change it to the following: The UK economy showed strong growth in the first quarter of 2025, with GDP estimated to have increased by 0.7% between January and March. This growth rate was significantly higher than the 0.1% growth recorded in the previous quarter and exceeded economists’ forecasts of around 0.6%.

Key drivers of this growth included a 0.7% increase in the services sector and a 1.1% rise in production, while the construction sector remained flat. Within services, sectors such as wholesale, retail, computer programming, car leasing, and advertising performed particularly well. On a monthly basis, GDP grew by 0.2% in March 2025, surpassing expectations of no growth for that month.

Real GDP per head also rose by 0.5% in Q1 2025, following two quarters of decline, and the year-on-year growth rate was 1.3% compared to the same quarter in 2024.

Despite this positive start, challenges remain for the UK economy, including recent tax increases on businesses and households, as well as the impact of US trade tariffs introduced in April 2025. These factors may constrain growth in the coming months.

In summary, the UK economy demonstrated resilience and stronger-than-expected growth in early 2025, driven mainly by services and production sectors, but faces headwinds ahead due to fiscal and trade pressures

Source BBC News