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last mo.

UK Economy Grows 0.5% in February, Surpassing Expectations

Revised data shows January stabilization, but concerns rise over Trump tariffs' potential impact on future growth.

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Skyscrapers are seen in central London, as viewed from south west London, Britain, January 13, 2025. REUTERS/Toby Melville/File Photo
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Chancellor of the Exchequer, Rachel Reeves speaks during a visit to the Jaguar Land Rover car factory in Birmingham, England, Monday, April 7, 2025. (AP Photo/Kirsty Wigglesworth, Pool)

Overview

  • The UK economy grew by 0.5% in February 2025, exceeding economists' forecasts of 0.1%, according to the Office for National Statistics (ONS).
  • January GDP figures were revised upward from a 0.1% contraction to flat growth, signaling economic stabilization before February's rebound.
  • Growth was broad-based, with a 1.5% rise in manufacturing, supported by strong performance in pharmaceuticals, electronics, and car production.
  • UK exports to the US increased by £500 million in February as businesses rushed to ship goods ahead of newly implemented US tariffs.
  • Chancellor Rachel Reeves welcomed the growth as an 'encouraging sign,' while analysts warn of potential headwinds from Trump's tariffs and global economic uncertainties.