UK Q4 2025 GDP Growth Confirmed at 0.1%

Official data confirmed Tuesday that Britain's economy grew by just 0.1 percent in the final quarter of 2025, matching initial estimates and underscoring the challenges ahead as the Iran war disrupts global energy markets and fuels inflation pressures.

The Office for National Statistics reported the October-to-December growth figure remained unchanged from preliminary readings, following a similarly modest 0.1 percent expansion in the third quarter. For the full year, gross domestic product rose 1.4 percent, a slight upward revision from the prior estimate of 1.3 percent, driven by updated calculations on expenditures. On a per capita basis, output dipped 0.1 percent in the fourth quarter compared to the previous year, though it increased 1.1 percent over 2025 as a whole.

Sector performance was mixed, with the dominant services industry showing no growth, production rising 1.2 percent and construction contracting 2 percent. Households increased saving amid uncertainty, pushing the savings ratio up 0.8 percentage points to 9.9 percent, the highest in recent years by historical standards. Real disposable income per person also climbed 1.2 percent in the quarter, reversing a prior...