The UK economy grew by 0.7 percent in the first quarter of 2025, compared with 0.1 percent growth in the previous quarter. After ending 2023 in recession, the UK economy grew strongly in the first half of 2024, growing by 0.8 percent in Q1, and 0.4 percent in Q2, with growth slowing in the second half of the year. In the third quarter of 2020 the UK experienced record setting growth of 16.8 percent, which itself followed the record 20.3 percent contraction in Q2 2020. Growing economy key to Labour's plans Since winning the 2024 general election, the UK's Labour Party have seen their popularity fall substantially. In February 2025, the government's approval rating fell to a low of -54 percent, making them almost as disliked as the Conservatives just before the last election. A string of unpopular policies since taking office have taken a heavy toll on support for the government. Labour hope they can reverse their declining popularity by growing the economy, which has underperformed for several years, and when measured in GDP per capita, fell in 2023, and 2024. Steady labor market trends set to continue? After a robust 2022, the UK labor market remained resilient throughout 2023 and 2024. The unemployment rate at the end of 2024 was 4.4 percent, up from four percent at the start of the year, but still one of the lowest rates on record. While the average number of job vacancies has been falling since a May 2022 peak, there was a slight increase in January 2025 when compared with the previous month. The more concerning aspect of the labor market, from the government's perspective, are the high levels of economic inactivity due to long-term sickness, which reached a peak of 2.84 million in late 2023, and remained at high levels throughout 2024.

The Gross Domestic Product (GDP) in the United Kingdom expanded 0.70 percent in the first quarter of 2025 over the previous quarter. This dataset provides the latest reported value for - United Kingdom GDP Growth Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

In the first quarter of 2025, the quarterly gross domestic product of the United Kingdom was approximately, 647 billion British pounds, compared with around 642.3 billion pounds in the previous quarter. The large dip in GDP that can be seen in the second quarter of 2020 saw the UK economy fall from 604.7 billion pounds to 481.8 billion, with more usual levels of output not recovering until well into 2021. The COVID-19 lockdowns enacted by the UK government at that time was the main reason for this large fall in GDP. Growth lagging as UK heads into 2025 After ending 2023 in recession, the UK economy started 2024 with the strongest quarterly GDP growth in several years, growing by 0.7 percent in the first quarter, and then by 0.4 percent in the second quarter. Economic growth in the second half of the year was, however, far less promising, with GDP flatlining in the third quarter, and monthly GDP shrinking by 0.1 percent in September and then again in October. Although GDP is still forecast to grow in 2025, the overall economic picture is precarious. In November, UK inflation rose to 2.6 percent, compared with just 1.7 percent in September, while the labor market continues to show signs of cooling after a period of high job vacancies and low unemployment. Labour pinning hopes on long-term growth After winning its first general election in 19 years in 2024, the Labour Government has seen its approval ratings plummet in its first few months in office. This shaky start is partly due to a government strategy of making unpopular decisions early in their tenure, which they hope will eventually encourage stable economic growth in the mid to long-term. By far the least popular policy was the withdrawal of winter fuel benefits for a significant number of pensioners, a cost-cutting measure deemed necessary due to the UK's vulnerable public finance position, with government debt at around 100 percent of GDP. A further measure introduced was a national insurance tax increase for employers, with almost half of UK firms citing increased taxes as their main external concern in Q3 2024. Avoiding any further tax rises or cuts to services will depend on if policies in other areas, such as planning reform, will kickstart the UK economy in time before the next election.

The UK economy shrank by 0.1 percent in May 2025 after shrinking by 0.3 percent in April. Since a huge decline in GDP in April 2020, the UK economy has gradually recovered and is now around 4.4 percent larger than it was before the COVID-19 pandemic. After the initial recovery from the pandemic, however, the UK economy has effectively flatlined, fluctuating between low growth and small contractions since January 2022. Labour banking on growth to turn around fortunes in 2025 In February 2025, just over half a year after winning the last general election, the approval rating for the new Labour government fell to a low of -48 percent. Furthermore, the Prime Minister, Keir Starmer was not only less popular than the new Conservative leader, Kemi Badenoch, but also the leader of the Reform Party, Nigel Farage, whose party have surged in opinion polls recently. This remarkable decline in popularity for the new government is, in some part, due to a deliberate policy of making tough decisions early. Arguably, the most damaging of these policies was the withdrawal of the winter fuel allowance for some pensioners, although other factors such as a controversy about gifts and donations also hurt the government. While Labour aims to restore the UK's economic and political credibility in the long term, they will certainly hope for some good economic news sooner rather than later. Economy bounces back in 2024 after ending 2023 in recession Due to two consecutive quarters of negative economic growth, in late 2023 the UK economy ended the year in recession. After not growing at all in the second quarter of 2023, UK GDP fell by 0.1 percent in the third quarter, and then by 0.3 percent in the last quarter. For the whole of 2023, the economy grew by 0.4 percent compared to 2022, and for 2024 is forecast to have grown by 1.1 percent. During the first two quarters of 2024, UK GDP grew by 0.7 percent, and 0.4 percent, with this relatively strong growth followed by zero percent growth in the third quarter of the year. Although the economy had started to grow again by the time of the 2024 general election, this was not enough to save the Conservative government at the time. Despite usually seen as the best party for handling the economy, the Conservative's economic competency was behind that of Labour on the eve of the 2024 election.

The Gross Domestic Product (GDP) in the United Kingdom expanded 1.30 percent in the first quarter of 2025 over the same quarter of the previous year. This dataset provides the latest reported value for - United Kingdom GDP Annual Growth Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

This statistic shows the United Kingdom (UK)'s quarterly gross domestic product (GDP) per capita at current prices from the first quarter of 2014 to the second quarter of 2019. The largest growth was between the 4th quarter of 2014 and the 1st quarter of 2015.

Quarterly and annual growth rates and revisions for UK gross domestic product (GDP), in chained volume measures at market prices.

Graph and download economic data for Real Gross Domestic Product at Factor Cost in the United Kingdom (RGDPFCUKQ) from Q2 1920 to Q4 2016 about cost, academic data, United Kingdom, real, GDP, and rate.

Graph and download economic data for National Accounts: GDP by Expenditure: Constant Prices: Gross Domestic Product: Total for United Kingdom (NAEXKP01GBQ657S) from Q2 1955 to Q1 2025 about United Kingdom, real, and GDP.

Investment as percent of GDP in the United Kingdom, December, 2024 The most recent value is 17.1 percent as of Q4 2024, a decline compared to the previous value of 17.57 percent. Historically, the average for the United Kingdom from Q1 1960 to Q4 2024 is 18.95 percent. The minimum of 15.38 percent was recorded in Q4 2009, while the maximum of 24.84 percent was reached in Q2 1989. | TheGlobalEconomy.com

Graph and download economic data for National Accounts: GDP by Expenditure: Constant Prices: Gross Fixed Capital Formation for United Kingdom (NAEXKP04GBQ657S) from Q2 1955 to Q1 2025 about fixed capital formation, fixed, capital, United Kingdom, gross, real, and GDP.

According to quarterly pulse monitors, the Dutch economy will face a recession in 2020 due to the coronavirus and geopolitical events. This according to one of five sources in the Netherlands that presented an economic outlook for 2020. From 2018 to 2019, GDP in the Netherlands showed a *** percent growth. On March 9, 2020, Rabobank economists calculated that a *** percent of GDP growth was expected for 2020. The source originally noted, however, that this is not only due to the coronavirus outbreak. The Netherlands also was going to feel the future effects of the United Kingdom leaving the EU, as the UK was one of the Netherlands’ biggest trading partners. During March 2020, the Dutch economy was also negatively impacted by events such as the U.S. -China trade war or the sudden drop in oil prices. By June 2020, the *** percent GDP growth forecast was revised to minus *** percent.

Is COVID-19 going to have a bigger impact in the Netherlands than in other European countries?

According to a forecast from the European Commission conducted in July 2020, the Dutch economy suffered a GDP hit of *** percent quarter-to-quarter in Q1 2020. In addition, a projected quarterly GDP decline of **** percent was estimated in Q2 2020. Real GDP for the year 2020 was predicted to decline by **** percent, a figure that was lower than real GDP losses predicted for other European countries. While the Netherlands successfully adopted emergency measures to protect employment, it was expected that the Dutch economy would be affected by lower private consumption and exports. Economic consequences in the Netherlands were predicted to be not as negative as in other countries. Belgium, for instance, was expected to face a GDP loss of **** percent.

Back to reality: Dutch economic consequences so far

The coronavirus and its resulting quarantine measures caused, the largest decrease in domestic household consumption in the Netherlands in over 20 years. Restaurants were believed to be especially hit by the pandemic, whereas expenditure on food, beverages, and tobacco went up. Furthermore, between May and June 2020, the monthly unemployment rate of the Netherlands increased greatly. In January 2020, the seasonally adjusted unemployment rate for ages 15 until 75 years stood at ***** percent, whereas by July it had increased to *** percent.

Corporate Profits in the United Kingdom increased to 152043 GBP Million in the first quarter of 2025 from 148024 GBP Million in the fourth quarter of 2024. This dataset provides the latest reported value for - United Kingdom Corporate Profits - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.