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The
Office for National Statistics found that the British economy
grew by 0.5% in February, ahead of market expectations for a
more modest increase of 0.2%. It also revised up January's
figure to no change from the previous estimate of a 0.1%
decline.
Were these more normal times, hopes for the year ahead would be
high. But the recent market turmoil prompted by Trump's tariff
policies — and subsequent abrupt changes — is expected to lead
to a downturn around the world, as businesses and consumers
retrench in the face of the heightened economic uncertainty.
China's decision to raise tariffs on U.S. goods from 84% to 125%
from Saturday has only added to fears that the world's two
biggest economies are heading for a drawn-out and damaging trade
war.
While welcoming Friday's growth figures, British Treasury chief
Rachel Reeves acknowledged the uncertain outlook.
“The world has changed and we have witnessed that change in
recent weeks," she said. “I know this is an anxious time for
families who are worried about the cost of living and British
businesses who are worried about what this change means for
them."
The Labour government has said raising the U.K.’s economic
growth is the number one priority over the next five years.
Since the global financial crisis in 2008-9, the British
economy’s growth performance has been historically lackluster.
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