Thu, 15 May 2025

Thu, 15 May 2025 UK economy is growing more than expected - how optimistic should you be?

The UK economy grew by more than expected at the start of 2025. What does this mean for you?

* The UK economy grew by 0.7% from January to March, beating expectations.
* The growth rate was driven by strong spending on services such as retail, hospitality and finance.
* The 0.2% growth in March also beat expectations, with analysts predicting no growth at all.
* The UK's growth rate is higher than many other large economies around the world, making it the highest in the G7.
* The US tariffs brought in at the start of the year have affected global trade, but the UK was able to grow despite this.
* The growth may not last, with economist Paul Dales predicting that "this might be as good as it gets for the year".
* The UK's deal with the US to cut some tariffs is uncertain and unclear when it will take effect.
* Some businesses have complained about increased taxes and National Insurance contributions, which may limit their ability to hire workers.
* Energy, water, phone, broadband, council tax, car tax and TV licence fees all rose at the start of April.
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