UK economy experiences a boost ahead of tax and tariff difficulties

The economy of the United Kingdom showed growth above expectations as of the first quarter of 2025, said Reuters. However, this fact may be overshadowed by higher taxes for British entrepreneurs and the consequences of US trade duties.

According to the official data from the Office for National Statistics, the country's economy grew by 0.7% between January and March this year, exceeding last year's figures. This value also exceeded the early forecasts of economists Reuters by 0.1%. Moreover, the level of business investment also showed a rise of 5.9%.

After the announcement of official data, the UK currency appreciated against the US monetary unit.

However, the Bank of England has announced that the increase in economic growth will be temporary due to the introduction of trade tariffs by the US administration and tax increases for entrepreneurs. These changes will occur as part of the new tax reform of the United Kingdom.