UK economy ‘ekes out’ 0.1% growth in Q4 2025 as challenges for businesses remain

Today’s ONS data shows that monthly GDP is estimated to have grown by 0.1% following growth of 0.2% in November 2025 (revised down from 0.3%) and an unrevised fall of 0.1% in October 2025.

This means that GDP in Q4 2025 rose by 0.1%, following a 0.1% increase in the previous quarter.

The value of goods exports fell by ?1.0 billion (3.2%) in December 2025, with falls in exports to both EU and non-EU countries. Exports of goods to the US, including precious metals, rose by ?0.1 billion (2.5%) in December 2025, while imports of goods fell by ? 0.5 billion (9.7%).

Samuel Edwards, Head of Client Portfolio Management at financial services firm Ebury, said: “December eked out 0.1% growth, ending 2025 on a high note – albeit a very modest one.

After a very turbulent week in UK politics and a wave of market jitters, businesses will be pleased to have a slither of positive economic news.

It comes just a week after the Bank of England struck a dovish tone at its latest rate meeting, signalling that interest rate cuts could be closer than expected, which should help ease up capital costs for businesses and encourage spending.

However, whilst the UK economy keeps its head above water, concerns remain around the slowing jobs market and sticky inflation.