UK GDP Outperforms G7 Peers with 0.3% Q2 Growth
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The UK economy expanded by 0.3% in Q2 2025, surpassing analyst expectations of 0.1% growth and outperforming most G7 counterparts. France matched the UK's pace, while Germany and Italy contracted by 0.1%. The US led with 0.7% growth.
Annualized H1 growth reached 2.2%, making Britain the fastest-growing G7 economy this year. This marks an improvement from Q1's 0.7% expansion, which was driven by businesses stockpiling ahead of anticipated US trade policy changes.
The rebound came despite weak April-May activity as companies had front-loaded imports to avoid tax changes. June's recovery was services-led, demonstrating the economy's resilience amid global trade tensions.
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