Key facts
- The UK economy expanded by 0.6% in the first quarter.
- The services sector drove the first-quarter economic expansion.
- The economic growth forecast for 2025 has been revised down to 1.3%.
- The current account deficit widened to -£22.2 billion in the first quarter.
The United Kingdom's economy experienced a growth of 0.6% during the first quarter of the year. This expansion was largely propelled by a strong performance in the services sector, which contributed significantly to the overall economic activity. However, this quarterly growth does not translate to an improved outlook for the entire year. The economic growth forecast for 2025 has been revised downwards to 1.3%, indicating a less optimistic projection for the coming year.
In addition to the revised growth forecast, the UK's current account deficit has also widened. For the first quarter, the deficit reached -£22.2 billion. This figure represents a notable increase and suggests a growing imbalance in the country's transactions with the rest of the world.
The downward revision in the annual growth forecast and the widening current account deficit present a mixed picture of the UK's economic health. While the services sector showed resilience in the first quarter, broader economic indicators point to potential challenges ahead.