UK Q1 Growth Outpaces US and Eurozone

The UK economy grew by 0.7% in the first quarter of 2025, outpacing forecasts and marking its strongest performance in a year, with growth driven by the services sector and robust business investment. According to the Office for National Statistics, the UK expanded faster than the US, eurozone, and several other major economies during this period. Chancellor Rachel Reeves and Prime Minister Keir Starmer have highlighted the data as evidence of successful economic policies, but acknowledge further work is needed. Economists and the Bank of England warn that the growth surge is likely temporary, as new US tariffs and domestic tax increases may slow investment, hiring, and overall growth in the coming quarters. While consumer spending remains resilient, the job market is showing signs of cooling, with rising unemployment and slower wage growth. Experts predict that GDP growth will moderate and return to its trend rate by early 2026.