Britain's economy grew more strongly than expected in early 2025, giving a boost to the government and finance minister Rachel Reeves, who nevertheless faces a stiffer test ahead due to her tax hike on businesses and Donald Trump's trade wars.

We’ll also keep an eye on the monthly GDP reading, which is seen flat for March, along with trade and industrial production figures.

Chancellor Rachel Reeves has told LBC the UK's higher-than-expected growth figures are 'really welcome', and reflect the decisions made by the government.

The Bank of England predicted last week that the UK economy will grow by 1 per cent this year, upgrading its previous 0.75 per cent forecast on the back of a strong start to 2025. However, it cut its growth forecast to 1.25 per cent for 2026, from 1.5 per cent in its February projections, as a result of the impact of tariffs.

The British economy started the year with an unexpectedly strong burst of growth. Output grew by 0.7 per cent across the first three months of 2025.

British finance minister Rachel Reeves on Thursday said there were clearly economic headwinds approaching, speaking after data showed Britain's economy grew more strongly than expected in early 2025.

London (UKX) +0.57% to 8,634. UK's GDP expected to grow 0.70% in Q1. UK construction orders surged 10.5% Y/Y in Q1. Manufacturing production in the UK dropped 0.8% M/M in March. Germany (DAX:IND) +0.72% to 23,