Fast Comment UK

The UK economy grew by a marginal 0.1% in Q4 2025, bringing full-year growth to 1.3%. Subdued business investment and household caution suggest a modest growth outlook through 2028.

Key Takeaways

• 1.The UK economy grew by only 0.1% in Q4 2025, with growth tapering off significantly after a stronger start to the year.
• 2.Business investment remains a significant weak spot, dropping 2.7% in the quarter and lagging behind G7 peers.
• 3.The 2025 annual GDP growth of 1.3% is below the Bank of England's estimate of the economy's productive potential.

Table of Contents

• UK economy grows 0.1% in Q4
• Household spending and business investment remains subdued
• Modest growth outlook for the forecast period
• Research disclaimers

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