Britain's GDP grows by 0.7 percent in Q1

Britain's real gross domestic product (GDP) grew by 0.7 percent in the first quarter (Q1) of 2025, marking the strongest quarterly expansion in a year, according to the Office for National Statistics (ONS).

The ONS figures released on Thursday have positioned Britain as the fastest-growing economy among the G7 nations.

A breakdown of the data revealed that the services sector expanded by 0.7 percent, and production increased by 1.1 percent. However, construction output remained flat during the January to March period.

Within services, administrative and support service activities saw the largest growth, rising by 3.3 percent. The wholesale and retail trade sectors, including the repair of motor vehicles and motorcycles, grew by 1.6 percent. In the production sector, manufacturing output increased by 0.8 percent, with notable contributions from the manufacture of transport equipment and machinery.

On the expenditure side, growth was driven by increases in gross fixed capital formation, net trade, and household consumption. Real household expenditure rose by 0.2 percent in Q1.

Compared to the same quarter a year ago, real GDP is estimated to have increased by 1.3 percent.

Economists noted that while the Q1 performance was encouraging, the potential impact of international trade policies and domestic fiscal adjustments could influence future economic outcomes.