FX.co ★ UK Economy Grows 1.3% in 2025

The UK economy grew by 1.3% in 2025, up slightly from 1.1% in 2024, with all major sectors contributing to the expansion. Nonetheless, this performance fell short of the government’s 1.5% growth forecast and remained weak by historical standards. Throughout the year, the economy contended with significant headwinds, including sizable tax rises, trade tensions stemming from the policies of US President Donald Trump, and a major cyberattack on the country’s largest car manufacturer. In addition, as the year drew to a close, both businesses and consumers remained cautious ahead of Chancellor of the Exchequer Rachel Reeves’ 26 November budget, even though it did not introduce any further immediate measures.