UK's surprise 0.7% GDP rise the biggest in the G7

But leading economists warn the boost flatters to deceive’

- ATHENA STAVROU and ARCHIE MITCHELL

Britain’s economy is “beginning to turn a corner”, the chancellor said as new figures show it grew by more than expected, becoming the fastest-growing in the G7 group of leading industrial nations.

GDP rose by 0.7 per cent in the first three months of 2025 – the fastest rate in a year – according to the Office for National Statistics.

Sir Keir Starmer seized on the figures, describing them as “very good and very welcome”.

Chancellor Rachel Reeves admitted “we still have more to do” to fix the country’s sluggish economy, but added: “I absolutely understand that the cost of living crisis is still real for many families, but the numbers today do show that the economy is beginning to turn a corner.”

The figures covered the three-month period directly before Donald Trump unveiled his “liberation day” tariffs on 2 April.

While the figures are a welcome boost for the prime minister and chancellor, after the economy stagnated through Labour’s first six months in power, experts warned they were artificially inflated by firms boosting production in a bid to dodge the US president’s tariffs.

Mr Trump imposed sweeping levies on countries around the world – including the UK – which sent global markets tumbling and prompted economic instability.