UK Economy Surges in Early 2025 Amid Property Market Rush

The UK's economy posted its quickest growth in a year during the first quarter of 2025. This surge, attributed to a rush in property purchases before tax deadlines, saw output increase by 0.7%, the fastest since early 2024, according to the Office for National Statistics.

In March alone, growth was revised up to 0.4%, despite a subsequent drop in April attributed to one-off factors. Finance Minister Rachel Reeves is hopeful for sustained growth to alleviate pressure for tax increases, while the Bank of England anticipates modest growth in the second quarter.

Despite mounting concerns over energy prices and U.S. tariffs, consumer confidence appears to be rebounding. A recent survey indicated rising optimism among employers, and interest rate cuts are expected to bolster household spending, although challenges remain in the form of a widening current account deficit.

(With inputs from agencies.)