UK Economy Beats Forecasts with 0.3% Growth in Q2
The UK economy posted stronger-than-expected growth in the second quarter, offering a rare sliver of optimism for Chancellor Rachel Reeves – though the broader picture remains far from rosy.
Official figures released on Thursday showed GDP rising by 0.3% between April and June. That’s more than double the 0.1% growth economists had pencilled in. Still, it’s a clear slowdown from the robust 0.7% jump recorded in the first quarter.
Economists say the result is a pleasant surprise in an otherwise uncertain climate. Businesses have been wrestling with rising costs and the heavier tax burden introduced in Reeves’ October Budget.
Add to that the turbulence caused by Donald Trump’s trade war, and the outlook becomes cloudier.
The Chancellor is now preparing for her crucial Autumn Budget. Experts warn it’s unlikely to be painless. Filling what some analysts claim is a fiscal shortfall of more than £20bn could mean further tax hikes – an unwelcome prospect for both households and companies.
For Reeves, the challenge is stark: stimulate sustainable growth while shoring up fragile public finances. The second-quarter uptick offers a glimmer of hope. But with global headwinds and domestic pressures mounting, the UK economy’s recovery is still walking a tightrope.
