LONDON — Official figures released Thursday indicate that the British economy grew at its fastest rate in a year during the first quarter of 2025, marking a significant boost for the Labour government. The Office for National Statistics reported a 0.7% increase in GDP from the last quarter of 2024, driven by the services sector. This growth positions the UK as the fastest-growing economy among G7 nations. Treasury chief Rachel Reeves attributes this success to Labour’s recent policy decisions. However, economists predict a slowdown in the second quarter due to global uncertainties, particularly concerning U.S. President Donald Trump’s tariff policies. Despite a temporary pause on some tariffs, including a 10% baseline tariff on U.K. goods entering the U.S., trade tensions persist. A potential U.S.-UK trade deal could alleviate some pressures, though new business taxes and price increases in April may hinder consumer demand. — new from ABC News
