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UK GDP grew faster than expected

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Published: 17:58, May 15, 2026

In the first quarter of 2026, UK Gross Domestic Product (GDP) grew by 0.6%, according to the Office for National Statistics (ONS), which was more than economists had forecast. The 0.6% figure followed a revised increase of 0.2% in the fourth quarter of 2025.

Real GDP UK Q1 2026 ONS Graph
Data source: ONS

All three sectors, services, production, and construction, contributed to the growth. Services, which grew by around 0.8%, was the largest contributor, followed by production (about 0.4%) and construction (around 0.3%).

For the whole 12-month period of 2025, GDP grew by an unrevised 1.4%, compared to 1% in 2024 and 0.4% in 2023.

GDP per head grew by an estimated 0.6% in the first quarter of 2026. Compared to the same quarter in 2025, GDP per head had grown by 0.9%.

The three sectors of the economy

The economy is divided into 3 sectors: services, production, and construction:

services (grew by around 0.6% in Q1 2026):

  • retail (shops, supermarkets)
  • hospitality (hotels, restaurants)
  • finance (banks, insurance)
  • healthcare (hospitals, clinics)
  • education (schools, universities)
  • transport (airlines, buses, trains)
  • IT and technology services
  • professional, scientific and technical services

production (grew by around 0.4% in Q1 2026):

  • manufacturing (cars, electronics, food products)
  • energy (oil, gas, electricity)
  • mining and quarrying
  • water supply and waste management
  • agriculture (farming, crops, livestock)
  • fishing and aquaculture (fish farms, shrimp farms, oyster and mussel cultivation)

construction (grew by around 0.3% in Q1 2026):

  • building houses and apartments
  • infrastructure (roads, bridges, railways)
  • commercial buildings (offices, shopping centres)
  • renovation and maintenance work
  • civil engineering projects (dams, tunnels, ports)
  • installation work (electrical systems, plumbing, heating)

International comparisons

  • Q1 2026

The UK, at 0.6%, enjoyed the fastest GDP growth in Q1 2026. The United States (0.5%) came second, followed by Canada (0.4%), Germany (0.3%), Italy (0.2%), and France (0.0%). Japan has not published its figures yet.

  • Whole year 2025

The US, at 2.1%, grew the fastest in 2025, followed by Canada (1.7%), the UK (1.4%), Japan (1.2%), France (0.9%), Italy (0.7%), and Germany (0.3%).

Britain’s Chancellor (Finance Minister) Rachel Reeves said that these latest figures show that the government has “the right economic plan.” She also warned that a Labour leadership contest could significantly undermine economic growth.

Christian Nordqvist Avatar