Thu, 15 May 2025

Thu, 15 May 2025 Faisal Islam: The UK's surprisingly strong growth may not be temporary

These figures provide an opportune moment for some optimism and a hard sell of the UK to the rest of the world.
UK economic growth exceeded expectations at 0.7% in Q1, beating predictions and putting it ahead of other G7 countries. The growth rate is considered healthy and normal, suggesting resilience in the economy despite recent challenges. While there are still concerns about the cost of living squeeze and pressure on small businesses, the figures indicate that many sectors have adapted to changes such as National Insurance increases and the National Living Wage. The impact of interest rate cuts and relative stability may have contributed to this growth, with real incomes rising and some businesses absorbing increased costs through wage rises. The National Living Wage has also led to a more robust consumer base. The government now faces an opportunity to promote economic growth as a key priority, following months of uncertainty and stagnation. This could be a chance for policymakers to reposition the UK as a stable and attractive location in the face of global trade turmoil.
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