Phoebus comment on GDP

11 April 2025

Richard Pike, chief sales and marketing officer at Phoebus Software says:

“News that GDP is estimated to have grown by 0.5% in February 2025, with growths in all main sectors, is a welcome surprise given the headwinds the UK economy has been facing. With independent forecasts for 2025 GDP growth hovering around just 1.1%, and many analysts revising their predictions downward due to rising business taxes and softer global demand, this is an unexpected but positive development.

“The resilience is particularly striking in the context of recent global pressures, not least the new US tariffs, which prompted KPMG and others to downgrade their UK growth forecasts. Although Trump announced on Wednesday a 90-day pause to the tariffs, which will provide some respite, the ongoing uncertainty and turbulence is unsettling for the market. While it’s too early to tell whether this growth marks the start of a more sustained recovery, it will certainly be interesting to see how this data impacts the Bank of England’s next interest rate decision.”