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Great Britain overtakes Germany: economic growth on the rise!
The British economy is growing faster than Germany's at 0.7%, despite warnings from the Bank of England. Current developments and forecasts.
Great Britain overtakes Germany: economic growth on the rise!
The British economy is surprisingly dynamic in the first quarter of 2025. With growth of 0.7 percent compared to the previous quarter, the country exceeded the expectations of economic experts, who had only expected an increase of 0.6 percent. Loud World This is a clear sign of positive development, fueled in particular by the service sector and a significant increase in production.
Finance Minister Rachel Reeves is optimistic and emphasizes that the plan to transform the British economy is working. Still, the Bank of England warns that this growth spurt could be temporary. Over the same period, Germany recorded a much more modest growth of just 0.2 percent, making Britain's progress seem even more striking.
Investments and infrastructure
A particularly encouraging sign is the noticeable increase in business investment. Reeves and Prime Minister Keir Starmer have already promised increased spending on infrastructure and reforms to help further strengthen the economy. In the coming years, economic growth is forecast to be 1 percent in 2025 and 1.5 percent by 2027.
Recent developments are not only important for the UK, but also have implications for the international trading environment. A new trade agreement with the USA in particular has caused a stir. However, tariffs on most British goods exports to the US have risen since April, which could weigh on future trade relations. Andrew Bailey, the head of the Bank of England, is calling for measures to reverse the decline in goods exports to the EU that has occurred since leaving the EU in 2020.
Overall, it appears that the British economy is currently in the fast lane, while other countries such as France, Italy and Canada have to follow suit. This positive data from the UK could act as a driver for renewed stabilization in the European market, although the long-term outlook presents challenges. Further details are in an article from Mirror to read.