London, Yiannis Haniotakis

The UK economy began in 2025 with an unexpected shrinkage, according to the latest official data published by the National Statistical Service (Ons). While forecasts have spoken of little growth, the reality proved to be different, highlighting the continued challenges facing the country in an uncertain global economic environment.

Specifically, the gross domestic product (GDP) decreased by 0.1% in January 2025, after an increase of 0.4% recorded in December 2024. The decline contradicts economists’ forecasts, which expected an increase of 0.1%.

The OMS pointed out that manufacturing production decreased by 0.9% in the first month of the year with the highest contribution to GDP decline. Constructions also declined in January, by 0.2%, while the services partially offset these reductions with an increase of 0.1%.

Commenting on the figures, British Finance Minister Rachel Ribs argued that the United Kingdom “feels the consequences” of the changes that are being made worldwide.

“That is why we are further and faster to protect our country, reform our public services and start economic growth to implement our plan for change. And that is why we begin the greatest increase in defense spending from the Cold War, fundamentally remodeling the British state to offer workers and their families, “Reeves added.

The shadow finance minister, Mel Straid, said that the shrinkage of GDP is not surprising “after almost no growth in the last three months of 2024”. At the same time, he described as a “murderer” of the government’s development, which he said “continues to underestimate Britain, increase taxes at record levels and crush businesses with its extreme employment legislation”.