Britain's economy grew by a better-than-expected 0.2% in March from February, official figures showed on Thursday.

Economists polled by Reuters had mostly expected a flat reading of 0.0%.

In the first quarter of 2025, gross domestic product grew by 0.7%, the Office for National Statistics said. That was above the 0.6% growth forecast in a Reuters poll.

British Prime Minister Keir Starmer and finance minister Rachel Reeves are trying to kickstart Britain's sluggish economy via increased spending on infrastructure and other reforms that they hope will boost investment.

However, the Bank of England said last week it expected the growth jump in the January-to-March period would prove temporary with output likely to expand by 1% this year, speeding up only slightly to 1.5% growth in 2027.

U.S. President Donald Trump's trade tariffs are expected to slow the global economy while British businesses have said they are slowing their hiring and investment plans due to big rises to employment taxes ordered by Reeves and to the minimum wage.

So far, Britain's consumers have remained largely unfazed by worries about the outlook for the economy. Data published this week showed a rise in their spending over March and April.

Source: Reuters