The UK economy grew by 0.7% in the first quarter of 2025, surpassing expectations. Analysts had predicted a growth rate of 0.6%, making the actual figure a positive surprise. This growth was driven primarily by spending on services such as retail, hospitality, and finance. Even March saw unexpected expansion, with the economy growing by 0.2% despite forecasts of no growth. Although the UK’s growth rate remains below 1%, it outperformed other G7 nations, partly due to pre-emptive exports ahead of US tariffs introduced in April. Economists caution that future growth may slow as these tariffs take full effect, though a recent UK-US deal aims to mitigate some impacts. Still, the initial quarter’s performance is seen as a hopeful sign for the UK economy.
— new from BBC