The limited growth recorded was driven by a range of industries which performed strongly in December, including pubs and bars and machinery manufacturers.
A slightly different measurement called GDP per capita – which divides the total amount of GDP by the number of people in the UK – actually fell over the period, by 0.1%.
That’s because while the economy expanded during the three months, the UK population also grew, meaning the share of the country’s wealth per person was smaller.
The government has made economic growth a key political priority.
Chancellor Rachel Reeves said she was not satisfied by the latest GDP figures, but that the government was “doing what is necessary to bring stability to the economy”.
However, the Bank of England has halved its growth forecast for the year ahead. In February it said it expects the economy to grow by 0.75% during 2025, down from its previous estimate of 1.5%.
It is concerned about the impact of higher inflation in the UK as a result of higher wage and national insurance costs for employers, and increased energy and water bills for consumers. US trade tariffs could also put prices up.
On 26 March, the Office for Budget Responsibility (OBR) – which monitors the government’s spending plans and performance – is also expected to downgrade its forecasts for the health of the UK economy over the coming years.
Economic forecasts are not always accurate but predictions from the Bank of England and the OBR are looked at closely.
