The limited growth recorded was driven by a variety of industries that performed strongly in December, including pubs, bars and machinery manufacturers.
The slightly different measurements called GDP per capita (dividing the total amount of GDP by the number of people in the UK) actually fell to 0.1%.
This is because while the economy expanded over the course of three months, the UK population also grew, and the country’s wealth per capita was small.
The government makes economic growth an important political priority.
Prime Minister Rachel Reeves is not satisfied with the latest GDP figures, but said the government is “doing what it takes to bring stability to the economy.”
However, the Bank of England has halved its forecast for growth in the future. In February, he said he expects the economy to grow by 0.75% in 2025.
They are concerned about the impact of higher UK inflation as a result of increased wages and national insurance costs for employers and increased energy and water bills for consumers. US trade tariffs can also raise prices.
On March 26, the Office of Budget Responsibility (OBR), which monitors government spending plans and performance, is also expected to downgrade its forecasts for the health of the UK economy in the coming years.
Economic forecasts are not always accurate, but forecasts and OBRs from the Bank of England are closely viewed.
