UK Economy Sees Strongest Growth Since February 2025 on AI Boost

Britain's economy grew by 1.6% in July compared to the same period last year, marking its fastest annual pace in 18 months.

The boost was largely due to a surge in growth from businesses involved in computer programming, benefiting from the AI boom, according to the Office for National Statistics (ONS).

Finance Minister John Healey welcomed the data, saying the economy showed 'welcome resilience' despite growth still being 'fragile'. The news may also make some Bank of England officials more willing to consider a rate hike before the end of the year.

The UK's gross domestic product (GDP) in July was stronger than expected, with economists forecasting 1.2% annual growth. However, experts have mixed views on whether Britain's current economic outperformance will be sustained.