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UK economy sees unexpected growth in Q2

Aug 14, 2025, 7:06am EDT
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Britain’s Chancellor of the Exchequer Rachel Reeves is accompanied by Finance Minister John O’Dowd and Northern Ireland Deputy First Minister Emma Little-Pengelly
Britain’s Chancellor of the Exchequer Rachel Reeves (center). Liam McBurney/Pool via Reuters.

The UK economy grew 0.3% in the second quarter of 2025, slowing from the first three months of the year but beating expectations.

The British government has made boosting the country’s sluggish economy a priority, but in the year since its election has had only moderate success.

Recent months have seen some better news, and slowing inflation has allowed the Bank of England to cut rates, meaning average mortgage rates have dipped below 5% for the first time since 2022, when then-Prime Minister Liz Truss announced unfunded tax cuts that sent the market into turmoil.

In further good news for the government, fears that rich non-doms would leave the country after recent tax increases appear to have been overstated.

A chart showing the share of global GDP for several European economies.
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