The UK experienced its strongest economic growth in over a year during Q1 2025, with GDP increasing by 0.7%. This surpassed predictions, signaling robust business investment and a surge in exports ahead of new US trade tariffs. The services sector, accounting for 75% of UK output, rose by 0.7%. Total exports increased by 3.5%, and business investment climbed nearly 6%. Despite a drop in government spending, modest consumer spending gains contributed positively. Chancellor Rachel Reeves stated this growth illustrates the UK's post-pandemic recovery and international standing among G7 economies.
The sharp uptick in business activity comes ahead of President Donald Trump's April 2 tariff imposition on UK goods, which economists believe led to a front-loading of exports.
Chancellor Rachel Reeves celebrated the figures as a sign of post-pandemic recovery and international competitiveness, saying: "Today's growth figures show the strength and potential of the UK economy."
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