UK economy grew more quickly than forecast in early 2025

15/5/2025 14:50

Britain's economy unexpectedly grew in March to push up output over the first quarter of 2025 by the most in a year, according to official data on Thursday that will be welcomed by finance minister Rachel Reeves.



Gross domestic product expanded by 0.2% in March from February. Economists polled by Reuters had mostly expected a flat reading of 0.0%.



Between January and March, gross domestic product grew by 0.7%, the Office for National Statistics said. That was above the 0.6% growth forecast in the Reuters poll and which had also been expected by the Bank of England.



The ONS said growth was largely driven by the services sector although production grew significantly too after a period of decline. Business investment grew strongly.



"Today's growth figures show the strength and potential of the UK economy," Reeves said in a statement. "In the first three months of the year, the UK economy has grown faster than the US, Canada, France, Italy and Germany."