The UK economy expanded 0.7 per cent in the first quarter, surpassing expectations and delivering a boost to Labour ahead of the impact of Donald Trump’s tariffs.
Thursday’s GDP figure for the first three months of the year was above both the 0.6 per cent forecast by economists in a Reuters poll and the 0.1 per cent expansion in the fourth quarter.
The economy grew 0.5 per cent in February and 0.2 per cent in March, according to the Office for National Statistics. Economists had forecast no growth for March.
Following the data release, the pound edged up 0.1 per cent against the dollar to $1.327.
The Labour government says growth is its top priority, although its critics accuse it of slowing down the economy with measures such as an increase in employers’ national insurance contributions that took effect last month.
Welcoming the first quarter’s rebound, chancellor of the exchequer Rachel Reeves said: “Up against a backdrop of global uncertainty we are making the right choices now in the national interest.”
Thursday’s figures are based on data compiled before Trump’s April 2 announcement of tariffs on countries across the world, including 10 per cent duties on imports from the UK.
Many economists say the tariffs will hit global growth, even though Trump has scaled back many of them.
While Washington and London agreed a limited trade deal last week — lowering tariffs on UK car and steel exports to the US — the flat 10 per cent charge remains in place.
The Bank of England has already warned that first-quarter growth is likely to be “significantly above” the UK’s underlying economic momentum, highlighting weak productivity and high borrowing costs.
The central bank forecast growth to slow to 0.1 per cent in the second quarter.
The UK GDP for the first quarter of this year compares with a 0.4 per cent expansion in the Eurozone during the period and a 0.1 per cent contraction in the US — figures that were distorted by a surge of imports