The British economy grew at its fastest quarterly pace in a year, supported by increased activity in the real estate market ahead of the expiration of a tax exemption and a surge in industrial production in anticipation of new U.S. import tariffs.
According to the final reading released by the Office for National Statistics on Monday, the UK's Gross Domestic Product (GDP) grew by 0.7% in the first three months of 2025, in line with the initial estimate.
Although March's growth was revised up to 0.4% from 0.2%, the GDP contracted by 0.3% in April, compared to a modest growth of just 0.1% in the last quarter of 2024, according to Reuters.
The UK housing market experienced significant activity ahead of the March 31 deadline for a tax exemption available to some buyers, while households dipped into their savings to finance spending. This led to the first decline in the savings rate in two years, although it remained strong at 10.9%.
Britain’s manufacturing sector recorded growth of 1.1% in the first quarter of 2025 compared to the last quarter of 2024, benefiting from a ramp-up in production before the U.S. tariff hikes in April
