GDP reaction: Growth has beaten gloomy expectations, says IPPR

Today’s figures show that:  

• In the second quarter of 2025, the UK economy grew by 0.3 per cent
• This is a decrease on the first quarter of 2025, when the growth rate was 0.7 per cent, but higher than the 0.1 per cent many expected 

Reacting to today’s quarterly GDP estimates, Pranesh Narayanan, senior research fellow at IPPR, said:

“Growth has beaten gloomy expectations today, suggesting that pessimism around the UK economy may be overblown. While the Chancellor has faced headwinds from Trump’s tariff war, which has slowed manufacturing growth, other parts of the economy remain on track.

“Looking ahead, there is a clear case for optimism. The government’s strong industrial strategy will deliver returns in the years to come, the upcoming Budget presents a major opportunity to incentivise investment, and sustained policy stability will continue to lift the UK’s growth forecast above that of other advanced economies.”

ENDS

Pranesh Narayanan is available for interview. Pranesh is a senior research fellow at IPPR and a former economist at HM Treasury.