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UK becomes fastest-growing G7 economy after strong first quarter

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UK becomes fastest-growing G7 economy after strong first quarter
News

News

UK becomes fastest-growing G7 economy after strong first quarter

2025-05-15 17:05 Last Updated At:17:20

LONDON (AP) — The British economy grew at its fastest rate in a year during the first quarter of 2025, official figures showed Thursday, in a welcome boost to the Labour government, which has made lifting the country's growth its top priority.

The Office for National Statistics said growth, as measured by gross domestic product, increased by 0.7% in the first quarter of the year from the final three months of 2024, with the country's dominant services sector doing particularly well.

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Britain's Chancellor of the Exchequer Rachel Reeves speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves, right, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves, right, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves, center, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves, center, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves, center, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves, center, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

The first quarter increase makes the British economy the fastest-growing among the Group of Seven leading industrial nations.

Growth was modestly ahead of market expectations for a 0.6% increase. It was also the biggest increase since the first quarter of 2024, when the economy expanded by 0.9%.

Treasury chief Rachel Reeves welcomed the growth leap, and said the figures showed the choices made by Labour since it was elected last July were beginning to pay off.

“We’re set to be the fastest growing economy in the G-7 in the first three months of this year and that’s incredibly welcome, but I know that there is more to do," she said while on a visit to a Rolls-Royce factory in Derby, northern England.

Most economists think is likely to slow down in the second quarter of the year, partly because of the global uncertainty generated by U.S. President Donald Trump's tariff policies.

Though most tariffs were paused for 90 days following the ensuing market turmoil, including the 10% baseline tariff applied to U.K. goods entering the U.S., the backdrop for the global economy remains highly uncertain, particularly if the U.S.-China trade war persists.

Some of that uncertainty, with regard to the British economy, lifted Thursday when both Trump and British Prime Minister Keir Starmer separately outlined details of a trade deal between the U.S. and the U.K. Though Trump kept the 10% baseline tariffs on U.K., he agreed to reduce the levies on British autos, steel and aluminum.

Sanjay Raja, chief U.K. economist at Deutsche Bank, said the growth uptick will likely be short-lived, especially during the second quarter when trade uncertainty will be at its peak.

“Exporters will likely see reduced demand as well from higher U.S. tariffs and weaker global demand,” he said.

Economists said growth will likely falter in the second quarter as new taxes on business were imposed in April. Also a raft of price rises during the month, including domestic energy and water bills, are expected to keep a lid on consumer demand.

Britain's Chancellor of the Exchequer Rachel Reeves speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves, right, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves, right, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves, center, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves, center, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves, center, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

Britain's Chancellor of the Exchequer Rachel Reeves, center, speaks with the media at the Rolls-Royce factory in Derby, England following the announcement from the Office for National Statistics that the U.K. economy grew by 0.7% between January and March, Thursday, May 15, 2025. (Darren Staples/PA via AP)

WASHINGTON (AP) — President Donald Trump’s motorcade took a different route than usual to the airport as he was departing Florida on Sunday due to a “suspicious object,” according to the White House.

The object, which the White House did not describe, was discovered during security sweeps in advance of Trump’s arrival at Palm Beach International Airport.

“A further investigation was warranted and the presidential motorcade route was adjusted accordingly,” White House press secretary Karoline Leavitt said in a statement Sunday.

The president, when asked about the package by reporters, said, “I know nothing about it.”

Trump left his Palm Beach, Florida, club, Mar-a-Lago, around 6:20 p.m. for the roughly 10-minute drive to the airport, but took a circular route around the city to get there.

During the drive, police officers on motorcycles created a moving blockade for the motorcade, at one point almost colliding with the vans that accompanied Trump.

Air Force One was parked on the opposite side of the airport from where it is usually located and the lights outside the plane were turned off.

Anthony Guglielmi, the spokesman for U.S. Secret Service, said the secondary route was taken just as a precaution and that “that is standard protocol.”

President Donald Trump departs Trump International Golf Club in the presidential limousine, known as The Beast, Sunday, Jan. 11, 2026, in West Palm Beach, Fla. (AP Photo/Julia Demaree Nikhinson)

President Donald Trump departs Trump International Golf Club in the presidential limousine, known as The Beast, Sunday, Jan. 11, 2026, in West Palm Beach, Fla. (AP Photo/Julia Demaree Nikhinson)

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