UK economy grows in Q1 ’25, led by services, production

UK economy expanded by 0.7 per cent in the first quarter of 2025, marking a sharp acceleration from the 0.1 per cent growth recorded in the previous quarter, according to official data published on Thursday.

Growth was driven by a 0.7 per cent rise in the services sector and a 1.1 per cent increase in production, while the construction sector remained flat.

On the expenditure side, the upturn was supported by stronger household consumption, net trade, and gross fixed capital formation.

Nominal GDP rose 1.6 per cent, largely reflecting higher employee compensation.

Real GDP per head increased by 0.5 per cent, recovering after two consecutive quarterly declines.

Attribution: Amwal Al Ghad English
Subediting: M. S. Salama