UK Economy Grows by 0.3 Percent in Q2 of 2025

The UK economy recorded a growth rate of 0.3 percent in the second quarter (Q2) of 2025, surpassing economists’ expectations of slower expansion, and following a stronger 0.7 percent growth in the first quarter of the same year.

According to a statement issued today by the UK Office for National Statistics (ONS), the country’s gross domestic product (GDP) rose by 0.4 percent in June, reversing a 0.1 percent decline in May. The monthly growth was mainly driven by solid performances across key sectors including services, industrial production, and construction, which together contributed to the better-than-expected quarterly results.

On an annual basis, the economy expanded by 1.2 percent in the second quarter compared to the same period in 2024. This figure exceeded the average analysts’ forecast of 1.0 percent, signaling a resilient economic recovery despite ongoing global uncertainties and domestic inflationary pressures.

Following the release of the GDP figures, the pound sterling edged slightly higher against the US dollar in early trading, reflecting renewed investor confidence in the UK’s short-term economic outlook.

British Chancellor of the Exchequer Rachel Reeves commented on the data, affirming that the UK economy had the strongest performance among G7 nations during the first quarter of the year. However, she acknowledged that the second half of 2025 may see a moderation in growth rates due to potential headwinds such as higher interest rates and global market volatility.

It is worth noting that the International Monetary Fund (IMF), in its latest economic outlook published last month, projected that the British economy would grow by 1.2 percent in 2025 and 1.4 percent in 2026. These projections suggest that the UK will outperform the eurozone and Japan during this period, although it is still expected to trail behind the United States and Canada in terms of overall economic momentum.

Quoted from QNA agency with modifications.