By Michelle Ndaga
Britain’s economy grew 0.3 percent in the second quarter of 2025, surpassing forecasts of 0.1 percent, official data from the Office for National Statistics (ONS) shows. The growth was driven by services and construction, offsetting a dip in production.
Finance Minister Rachel Reeves described the figures as “positive,” while analysts noted challenges remain from higher business taxes and earlier US tariffs, which caused exports to the US to drop by £700 million ($950 million) in June.
Unemployment rose to 4.7 percent, the highest in four years, but economists say June’s rebound signals resilience in the economy. The Bank of England recently cut interest rates to 4 percent to support growth.
The data paints a picture of an economy navigating fiscal pressures and global trade challenges while showing pockets of recovery and strength.
