AI Data Insight
The UK's annual GDP growth rate reached 1.3% in 2025, a modest recovery from 1.1% in 2024, but remained below the 1.5% originally forecast by the central bank and the OBR. Constrained by the lagging effects of high interest rates and a pullback in business investment following tax increases in the Autumn Budget, the economy expanded by only 0.1% in the fourth quarter. The services sector recorded zero growth and the construction sector suffered a significant decline, leaving the economy largely reliant on a recovery in manufacturing for support.