UK GDP grows 0.7% as economy booms 'faster than expected'

The UK grew at the fastest rate in a year over the first quarter of 2025, in a boost to Chancellor , new official figures show. Gross domestic product () increased by 0.7% between January and March, the Office for National Statistics 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%. 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.

Liz McKeown, ONS director of economic statistics, said: "The economy grew strongly in the first quarter of the year, largely driven by services, though production also grew significantly, after a period of decline.

"Growth in services was broad based, with wholesale, retail and computer programming all having a strong quarter as did car leasing and advertising.

"These were only slightly offset by falls in education, telecoms and legal services."

Chancellor Rachel Reeves said the growth figures showed the Government was "making the right choices" but acknowledged "there is more to do".

She said: "Today's growth figures show the strength and potential of the UK economy.

"In the first three months of the year, the UK economy has grown faster than the US, Canada, France, Italy and Germany.

"Up against a backdrop of global uncertainty we are making the right choices now in the national interest.

"Since the election we have already had four cuts, signed two trade deals, saved British Steel and given a pay rise to millions by increasing the minimum wage.

"Our plan for change is working. But I know there is more to do and that is why I'm determined we go further and faster to make working people better off."

Shadow chancellor Sir Mel Stride said both the Office for Budget Responsibility and the International Monetary Fund had downgraded short-term growth forecasts and hit out at the hike in employers' national insurance, which he branded a "jobs tax".

He explained: "While it's welcome the economy is growing, both the OBR and IMF have downgraded the UK's growth.

"Labour inherited the fastest-growing economy in the G7, but their decisions have put that progress at risk.

"Labour's jobs tax, unemployment bill and reckless choices have seen the number unemployed rise by 10% and working families £3,500 worse off.

"Only the Conservatives believe in low tax, free-enterprise and less regulation, giving business the conditions to create good well paid jobs and wealth in our economy."