UK Economy Posts Modest Growth Amid Global Turbulence

The UK economy has been growing at a moderate pace so far this year, with overall growth for 2026 expected to be in the region of 1% to 1.2%, according to new figures from the Office for National Statistics (ONS).

This is more quickly than other G7 countries, including the US and Canada, which saw stronger growth in 2025. The latest monthly figure, for July, showed a growth rate of 0.4%.

Economic growth matters because it affects things like pay increases for workers and the amount of tax the government raises to pay for services. When GDP is going up steadily, people pay more in tax because they're earning and spending more, which means more money for the government to spend on public services.