In 2024, the gross domestic product (GDP) of the United Kingdom grew by 0.9 percent and is expected to grow by just one percent in 2025 and by 1.9 percent in 2026. Growth is expected to slow down to 1.8 percent in 2027, and then grow by 1.7, and 1.8 percent in 2027 and 2028 respectively. The sudden emergence of COVID-19 in 2020 and subsequent closure of large parts of the economy were the cause of the huge 9.4 percent contraction in 2020, with the economy recovering somewhat in 2021, when the economy grew by 7.6 percent. UK growth downgraded in 2025 Although the economy is still expected to grow in 2025, the one percent growth anticipated in this forecast has been halved from two percent in October 2024. Increased geopolitical uncertainty as well as the impact of American tariffs on the global economy are some of the main reasons for this mark down. The UK's inflation rate for 2025 has also been revised, with an annual rate of 3.2 percent predicated, up from 2.6 percent in the last forecast. Unemployment is also anticipated to be higher than initially thought, with the annual unemployment rate likely to be 4.5 percent instead of 4.1 percent. Long-term growth problems In the last two quarters of 2023, the UK economy shrank by 0.1 percent in Q3 and by 0.3 percent in Q4, plunging the UK into recession for the first time since the COVID-19 pandemic. Even before that last recession, however, the UK economy has been struggling with weak growth. Although growth since the pandemic has been noticeably sluggish, there has been a clear long-term trend of declining growth rates. The economy has consistently been seen as one of the most important issues to people in Britain, ahead of health, immigration and the environment. Achieving strong levels of economic growth is one of the main aims of the Labour government elected in 2024, although after almost one year in power it has so far proven elusive.

Government spending in the United Kingdom was approximately 44.7 percent of GDP in 2024/25, compared with 39.6 percent in 2019/20.

The government of the United Kingdom borrowed approximately 2.6 percent worth of its GDP in the 2024/25 financial year, compared with 2.3 percent in 2023/24. In 2020/21, government borrowing reached 11.6 percent of GDP, due to increased financial support to public services during the COVID-19 pandemic, combined with reduced revenue because of societal lockdowns.

Key information about United Kingdom Real GDP Growth

• The Gross Domestic Product (GDP) in United Kingdom expanded 1.3 % YoY in Sep 2025, following a growth of 1.4 % in the previous quarter.
• Real GDP Growth YoY data in UK is updated quarterly, available from Mar 1956 to Sep 2025, with an average rate of -0.4 %.
• The data reached an all-time high of 25.5 % in Jun 2021 and a record low of -21.7 % in Jun 2020.

CEIC calculates quarterly Real GDP Growth from quarterly Real GDP. The Office for National Statistics provides Real GDP in local currency, at chain linked 2023 prices.


Related information about United Kingdom Real GDP Growth

• In the latest reports, Nominal GDP of UK reached 1,029.9 USD bn in Sep 2025.
• Its GDP deflator (implicit price deflator) increased 3.7 % in Sep 2025.
• GDP Per Capita in UK reached 53,191.3 USD in Dec 2024.
• Its Gross Savings Rate was measured at 17.5 % in Jun 2025.
• For Nominal GDP contributions, Investment accounted for 17.9 % in Jun 2025.
• Public Consumption accounted for 21.4 % in Jun 2025.
• Private Consumption accounted for 61.2 % in Jun 2025.

United Kingdom UK: GDP: % of GDP: Exports of Goods and Services data was reported at 30.529 % in 2017. This records an increase from the previous number of 28.255 % for 2016. United Kingdom UK: GDP: % of GDP: Exports of Goods and Services data is updated yearly, averaging 24.791 % from Dec 1960 (Median) to 2017, with 58 observations. The data reached an all-time high of 30.529 % in 2017 and a record low of 18.476 % in 1967. United Kingdom UK: GDP: % of GDP: Exports of Goods and Services data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s United Kingdom – Table UK.World Bank.WDI: Gross Domestic Product: Share of GDP. Exports of goods and services represent the value of all goods and other market services provided to the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments.; ; World Bank national accounts data, and OECD National Accounts data files.; Weighted average;

A list of fast facts on the ESG performance of each sector of the UK economy.

A list of fast facts on the performance of each sector of the UK economy.

A detailed data breakdown of financial and societal value of woodland natural resources in the UK.

Key information about United Kingdom Nominal GDP

• United Kingdom Nominal GDP reached 1,029.9 USD bn in Sep 2025, compared with 1,008.0 USD bn in the previous quarter.
• Nominal GDP in UK is updated quarterly, available from Mar 1957 to Sep 2025, with an average number of 301.0 USD bn.
• The data reached an all-time high of 1,029.9 USD bn in Sep 2025 and a record low of 15.1 USD bn in Mar 1957.

CEIC converts quarterly Nominal GDP into USD. Office for National Statistics provides Nominal GDP in local currency. Federal Reserve Board average market exchange rate is used for currency conversions.


Related information about United Kingdom Nominal GDP

• In the latest reports, UK GDP expanded 1.3 % YoY in Sep 2025.
• Its GDP deflator (implicit price deflator) increased 3.7 % in Sep 2025.
• UK GDP Per Capita reached 53,191.3 USD in Dec 2024.
• Its Gross Savings Rate was measured at 17.5 % in Jun 2025.
• For Nominal GDP contributions, Investment accounted for 17.9 % in Jun 2025.
• Public Consumption accounted for 21.4 % in Jun 2025.
• Private Consumption accounted for 61.2 % in Jun 2025.

Physical (non-monetary) and monetary estimates of services provided by natural assets in the UK between 2000 and 2018.

Real household disposable income per person in the United Kingdom is expected to grow by 2.6 percent in 2024/25, with disposable income growth slowing from that point onwards. In 2022/23, disposable income fell by two percent, after falling by 0.1 percent in 2021/22, and 0.3 percent in 2020/21.

Key information about United Kingdom Private Consumption: % of GDP

• United Kingdom Private Consumption accounted for 61.2 % of its Nominal GDP in Jun 2025, compared with a ratio of 58.1 % in the previous quarter.
• UK Private Consumption contribution to Nominal GDP ratio is updated quarterly, available from Mar 1955 to Jun 2025, with an average share of 59.6 %.
• The data reached an all-time high of 70.2 % in Dec 1955 and a record low of 55.5 % in Mar 2021.

CEIC calculates Private Consumption as % of Nominal GDP from quarterly Private Consumption Expenditure and quarterly Nominal GDP. Private Consumption Expenditure is calculated as the sum of Household and NPISHs consumption. Office for National Statistics provides Private Consumption Expenditure in local currency and Nominal GDP in local currency.


Related information about United Kingdom Private Consumption: % of GDP

• In the latest reports, UK GDP expanded 1.3 % YoY in Sep 2025.
• Its Nominal GDP reached 1,029.9 USD bn in Sep 2025.
• UK GDP Per Capita reached 53,191.3 USD in Dec 2024.
• Its Gross Savings Rate was measured at 17.5 % in Jun 2025.

Key information about United Kingdom GDP Per Capita

• United Kingdom Gross Domestic Product (GDP) per Capita reached 53,191.345 USD in Dec 2024, compared with 49,937.926 USD in Dec 2023.
• UK GDP Per Capita data is updated yearly, available from Dec 1957 to Dec 2024, with an average number of 20,883.205 USD.
• The data reached an all-time high of 53,191.345 USD in Dec 2024 and a record low of 1,204.000 in Dec 1957.
• CEIC converts annual GDP per Capita into USD. Office for National Statistics provides GDP per Capita in local currency. Federal Reserve Board average market exchange rate is used for currency conversions. Seasonally adjusted auxiliary series is used since non-seasonally adjusted data is unavailable from the source.

Related information about United Kingdom GDP Per Capita data

• In the latest reports, UK GDP expanded 1.264 % YoY in Sep 2025.
• UK Nominal GDP reached 1,029.876 USD bn in Sep 2025.
• Its GDP deflator (implicit price deflator) increased 3.739 % in Sep 2025.
• Gross Savings Rate of UK was measured at 17.472 % in Jun 2025.

United Kingdom UK: GDP: Exports of Goods and Services data was reported at 622,063.000 GBP mn in 2017. This records an increase from the previous number of 554,738.000 GBP mn for 2016. United Kingdom UK: GDP: Exports of Goods and Services data is updated yearly, averaging 117,109.563 GBP mn from Dec 1960 (Median) to 2017, with 58 observations. The data reached an all-time high of 622,063.000 GBP mn in 2017 and a record low of 5,220.010 GBP mn in 1960. United Kingdom UK: GDP: Exports of Goods and Services data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s UK – Table UK.World Bank: Gross Domestic Product: Nominal. Exports of goods and services represent the value of all goods and other market services provided to the rest of the world. They include the value of merchandise, freight, insurance, transport, travel, royalties, license fees, and other services, such as communication, construction, financial, information, business, personal, and government services. They exclude compensation of employees and investment income (formerly called factor services) and transfer payments. Data are in current local currency.; ; World Bank national accounts data, and OECD National Accounts data files.; ;

Across the United States, the United Kingdom, Germany, and the European Union, gross domestic products (GDP) decreased in 2020 as a result of the COVID-19 pandemic. However, by 2021, growth rates were positive in all four areas again. The United Kingdom, Germany, and the European Union all experiencing slow economic growth in 2023 amid high inflation, with Germany even seeing an economic recession. GDP and its components GDP refers to the total market value of all goods and services that are produced within a country per year. It is composed of government spending, consumption, business investments and net exports. It is an important indicator to measure the economic strength of a country. Economists rely on a variety of factors when predicting the future performance of the GDP. Inflation rate is one of the economic indicators providing insight into the future behavior of households, which make up a significant proportion of GDP. Projections are based on the past performance of such information. Future considerations Some factors can be more easily predicted than others. For example, projections of the annual inflation rate of the United States are easy to come by. However, the intensity and impact of something like Brexit is difficult to predict. Moreover, the occurrence and impact of events such as the COVID-19 pandemic and Russia's war in Ukraine is difficult to foresee. Hence, actual GDP growth may be higher or lower than the original estimates.