UK Economy Surges, But Future Uncertain Amidst Global Trade Tensions
2025-05-15
The British economy grew at its fastest pace in a year during the first quarter of 2025, expanding by 0.7%, a welcome boost for the Labour government. The services sector fueled this growth, making the UK the fastest-growing G7 economy in Q1. However, economists predict a slowdown in Q2 due to global uncertainty stemming from US tariffs and new UK taxes. While a US-UK trade deal was announced, reducing tariffs on some goods, the lingering effects of the US-China trade war and rising domestic prices are expected to dampen consumer demand and export growth.