UK economy grew 0.1% in Q4 2025 in World Economy News 01/04/2026 The UK economy expanded by 0.1% quarter-on-quarter in the fourth quarter of 2025, according to final GDP figures released Tuesday, matching the initial estimate and highlighting weakness in private sector activity ahead of the Iran conflict. The breakdown showed public sector activity increased while private sector activity declined during the period. Consumer spending rose by just 0.1% quarter-on-quarter, revised down from a previous estimate of 0.2%. Business investment fell by 2.5% quarter-on-quarter, compared to a prior reading of negative 2.7%. Net trade subtracted 0.5 percentage points from GDP growth. Due to rounding adjustments, GDP growth for 2025 as a whole was revised up from 1.3% to 1.4%. Real household disposable incomes rose by 1.3% quarter-on-quarter in Q4, while the saving rate increased from 9.1% in Q3 to 9.9%. However, real household disposable incomes still fell by 0.5% in the year to Q4 2025. The figures predate the surge in energy prices following the start of the Iran war in late February. Capital Economics projects real GDP may rise by approximately 0.3% quarter-on-quarter in Q1 2026, but expects limited growth thereafter. In Capital Economics’ baseline scenario, the 0.9% increase in real household disposable incomes in 2025 is projected to be followed by approximately a 0.5% decline in 2026 due to rising inflation. The firm forecasts GDP growth of just 0.5% for 2026, down from 1.4% in 2025. In an adverse scenario, GDP growth is projected at 0.3% this year with a mild recession possible. This compares to real GDP growth of 8.5% in 2021 and 5.1% in 2022, when energy prices surged following Russia’s invasion of Ukraine. Source: Investing.com 2026-04-01 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share