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UK economy undershot expectations to grow by 0.1% in final quarter of 2025

Figure caps year of lacklustre growth marked by trade shocks

The UK economy undershot expectations to grow by 0.1 per cent in the final quarter of 2025, capping a year of lacklustre growth that was overshadowed by trade shocks and uncertainty over fiscal policy.

The change in real quarterly GDP fell short of the 0.2 per cent increase forecast in a Reuters poll of analysts, and compared with an expansion of 0.1 per cent in the third quarter.

GDP increased 0.1 per cent in the month of December alone. The previous month’s increase was revised down slightly to 0.2 per cent.

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