UK (Parliament Politics Magazine) – Britain’s economy expanded by 0.5% in February, beating projections and showing broad gains across sectors despite concerns over the global trade war.
As reported by Reuters, Office for National Statistics data showed the UK economy rose 0.5% in February, far exceeding the 0.1% growth projected by economists and polls.
ONS data on February’s economic growth
According to the ONS, February’s GDP revealed a 1.4% year-on-year increase, well above the expected 0.9%. The revision of January’s data also clarified that output remained unchanged from December, instead of declining by 0.1%.
The ONS reported that broad-based improvements in services and manufacturing sectors drove February’s economic growth.
February saw a recovery in construction, following a dip in January, reflecting the government’s growing impact on housebuilding efforts. In the services sector, areas like computer programming, telecoms, and car dealerships posted notable results.
UK economic forecasts impacted by Trump’s new tariffs
The UK economy grew by a modest 1.1% in 2024. As a result, forecasters reduced their 2025 outlook to just 1%, though they predict a stronger recovery in 2026 with a projection of 1.9%.
The recent announcement by President Trump regarding new levies on U.S. imports has raised doubts about these forecasts. The new tariffs increase the prices of British exports to the U.S. by at least 10% and more than double the costs of imports from China.
What did Martin Sartorius say about UK GDP growth in February?
Martin Sartorius, principal economist at the Confederation of British Industry, stated,
“UK GDP growing above expectations in February provides some hope that the economy may have seen a solid expansion over the first quarter, following a soft patch in the second half of last year. However, underlying momentum in the private sector remains feeble.”
What did Stephen Kinnock say about the latest UK GDP figures?
Health Minister Stephen Kinnock welcomed the latest GDP data but warned that more effort is required to enhance the UK’s economic outlook.
He stated,
“Obviously, the stability that this government … has brought is helping investors to make plans for the longer term,”
adding,
“That helps drive up investment, which drives up employment, drives up growth, and that is good news, of course. There is still a very long way to go.”
Mel Stride’s stance on Labour’s impact on UK growth
The shadow chancellor, Mel Stride, stated,
“Since coming to office, Labour’s choices have killed growth stone dead and there is still a long way to go to recover.”
He said,
“At the emergency budget, the forecasts for growth, inflation and borrowing all moved in the wrong direction because of Labour’s decisions.”
Mr Stride added,
“Hardworking families deserve better than a government crowing about sluggish growth whilst they will be £3,500 worse off because of the jobs tax.”
Rachel Reeves’ views on February’s GDP growth
Chancellor Rachel Reeves responded to February’s unexpected GDP growth of 0.5%, highlighting it as a positive sign for the economy.
She said,
“The latest growth figures are encouraging signs that our Plan for Change is working. But we are not complacent.”
Ms Reeves added,
“The world has changed. We must go further and faster to kickstart economic growth, provide security for working people and put more money in their pockets.”
UK economy’s performance in Q4 2024
Last month, official data revealed that the UK economy defied expectations in Q4 2024, avoiding a recession and relieving pressure on Rachel Reeves after no growth in summer.
The ONS reported that Britain’s GDP rose by 0.1% in Q4 2024, outpacing expectations of a 0.1% contraction by economists and the Bank of England.
Liz McKeown’s views on GDP growth in Q4 2024
Liz McKeown, the ONS director of economic statistics, stated,
“The economy picked up in December after several weak months, meaning, overall, the economy grew a little in the fourth quarter of last year.”