UK Economic Growth Slows in Q2 2025
The UK economy recorded a slowdown in growth during the second quarter of the year, weighed down by uncertainty surrounding tariffs and higher taxes.
Official data showed that gross domestic product (GDP) rose by 0.3% between April and June, compared with 0.7% growth in the first quarter. The figure exceeded earlier forecasts of 0.1%, supported by stronger economic activity in June and upward revisions to previous data.
Monthly data revealed a 0.4% expansion in June, helping to offset some of the quarterly slowdown.
The British economy continues to face structural headwinds, including uncertainty in global trade amid higher US tariffs on imports, as well as a domestic labour market slowdown partly linked to increased labour taxes and a significant rise in the minimum wage.
The International Monetary Fund (IMF) projects UK economic growth of 1.2% in 2025 and 1.4% in 2026, slightly ahead of the eurozone and Japan but slower than the expected growth rates for the United States and Canada.
