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UK economy grows at fastest quarterly rate in a year in boost for Reeves - P.A.MEDIA
BY Anna Wise, PA Business Reporter
The UK economy grew at the fastest rate in a year over the first quarter of 2025, in a boost to Chancellor Rachel Reeves, new official figures show.
Gross domestic product (GDP) increased by 0.7% between January and March, the Office for National Statistics (ONS) said.
This means it came in ahead of economists’ expectations of 0.6% growth for the quarter.
It was also the highest GDP rate since the first quarter of 2024, when the economy jumped by 0.9%.
Growth was driven by the country’s dominant services sector, which was strengthening in the opening months of the year despite some businesses warning that they were grappling with rising costs.
Ms Reeves said the figures “show the strength and potential of the UK economy”.
“Up against a backdrop of global uncertainty we are making the right choices now in the national interest,” she said.
Prime Minister Sir Keir Starmer said the figures showed he was meeting his goal of having the highest growth in the G7 group of advanced economies.
“But I know the Tory cost-of-living crisis isn’t over – we will go further and faster to deliver for working people,” Sir Keir said.
Ms Reeves acknowledged that there was “more to do”, with the latest ONS figures covering the period before tax rises and US President Donald Trump’s “liberation day” tariff announcements.
Company national insurance contributions increased from April, which some economists have said will force firms to cut jobs.
And the US has imposed a 10% blanket tariff on most UK goods entering the world’s biggest economy, which is expected to directly impact exporters and has led to heightened uncertainty affecting businesses and households.
