The UK economy did not grow from July to September.
According to official estimates, the UK economy did not increase at all between July and September. The updated report follows a slew of dismal numbers, such as inflation increasing at its quickest rate in eight months and the GDP unexpectedly contracting in October.
The challenge to revive the economy “after 15 years of neglect is huge,” according to Chancellor Rachel Reeves, while Mel Stride, the shadow chancellor, claimed that Monday’s data indicated “growth has tanked on Labour’s watch.” The government has made strengthening the economy its top priority, therefore the revised figure would be a setback. Labour has pledged to achieve the highest rate of sustained economic growth among the richest countries in the world, known as the G7.
Price increases and job losses
According to a poll conducted by the CBI, which says it represents 170,000 businesses, private sector companies in all industries anticipated a “steep decline in activity” in the first three months of 2025. The survey was based on responses from 899 businesses between November 25 and December 12.
There may be a “January spending squeeze on the horizon” for customers, according to a different poll conducted by the British Retail Consortium, which represents UK retailers from Tesco to Marks & Spencer. The general manager of the Alexander Bar in Wimbledon, Mick Dore, stated that the increase in national insurance contributions made by the establishment’s 50 to 60 employees will result in higher expenses in April.
further information on the UK economy
With a population of almost 67 million and a gross domestic output (GDP) of $3.07 trillion in 2022, the UK has the sixth-largest economy in the world, behind the US, China, Japan, Germany, and India. England, Scotland, Wales, and Northern Ireland comprise the United Kingdom. Its economy is very diversified, and its standard of living is typically regarded as high. Services, manufacturing, construction, and tourism are the industries that make up the largest portion of the UK’s GDP.
key takeaways
With over 42% of exports in 2020, the EU is the United Kingdom’s biggest trading partner. The United States is the nation with which it trades the most.
In 2022, the UK’s GDP will be $3.07 trillion, making it the sixth-largest economy in the world.
Brexit’s impact on the British economy
Known as “Brexit” (short for British withdrawal), the United Kingdom’s June 2016 decision to leave the European Union (EU) officially went into effect on January 31, 2020.
However, it’s still early, and these aren’t typical times. A pandemic, an energy crisis, and a great deal of economic upheaval have occurred since Brexit formally went into force, making it challenging to pinpoint the precise effects of Britain’s exit from the EU.
The government’s Office for Budget Responsibility in the United Kingdom has likewise been pessimistic. Among other things, it stated in its most recent projections, released in March 2023, that Brexit will lower long-term productivity by roughly 4% and exports and imports by almost 15%.
Industries That Support the Economy
With 80% of gross value added (GVA), a metric of economic activity comparable to GDP, the services sector is the largest in the United Kingdom, according to the Office for National Statistics (ONS). Retail, food and beverage, entertainment, and business and financial services are just a few consumer-focused industries that comprise the U.K. service sector.
The Office of National Statistics (ONS) reports that in 2020, the largest GVA contributions to the U.K. economy came from the government, health, and education sectors.
Another significant source of income for the UK is tourism. Foreign tourists spent £26.5 billion, or $34.3 billion, on travel and tourism in the United Kingdom in 2022.
The Bottom Line
The UK plays a major role in the global economy and is the sixth-largest economy in the world. This world-class economy generates substantial revenue from tourism, manufacturing, retail, and financial services.