The United Kingdom’s economy posted modest growth in August, expanding by 0.1% from July, according to the Office for National Statistics (ONS). The slight improvement offers a positive signal for the country’s economic direction as Finance Minister Rachel Reeves prepares to unveil the national budget in November.
Although July’s GDP was revised to show a minor 0.1% decline, the overall trajectory remains steady. The International Monetary Fund (IMF) forecasts that the UK will achieve the second-fastest growth among the Group of Seven (G7) economies in 2025, trailing only the United States, with an annual expansion of 1.3%.
Analysts believe that continued efforts to enhance trade partnerships and strengthen domestic industries could reinforce this momentum. Fergus Jimenez-England of the National Institute of Economic and Social Research highlighted that restoring business confidence and reducing fiscal uncertainty are essential steps toward sustained economic progress.
Data from the ONS also showed that growth in the three months to August rose to 0.3%, supported by public health service activity and stable performance across key sectors. As global trade adjusts and new opportunities emerge, the UK’s diversified economy remains well-positioned to benefit from renewed investment and export expansion.
The Bank of England’s decision to maintain interest rates at 4% further supports a stable business environment, encouraging both domestic and international trade activity.
The latest figures indicate cautious optimism for the UK economy, suggesting that a combination of prudent fiscal policy and robust trade engagement could drive stronger growth in the months ahead.
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