Britain’s economy expanded by 0.3% between April and June, according to official figures released on Tuesday. The number matched earlier estimates from the Office for National Statistics

(ONS) and was in line with what economists had expected.

Despite the modest pace, the UK stood out as the fastest-growing economy among the G7 nations in the first half of the year. However, much of that boost came from temporary factors, such as a spike in exports ahead of new U.S. tariffs. Looking ahead, the Bank of England expects growth for the whole of 2025 to be far slower—around 1.25%.

Compared with last year, the economy in the second quarter was 1.4% larger, a slight upward revision from an earlier estimate. On a per-person basis, output was up 0.9% from a year ago. For 2024 as a whole, growth remained unchanged at 1.1%.

But there are warning signs too. Britain’s current account deficit—the gap between what the country earns from abroad and what it spends—widened sharply. It hit nearly £29 billion ($38.8 billion) in the second quarter, much higher than expected and equal to 3.8% of GDP, compared with 2.8% in the first quarter. Photo by Philippe Salgarolo, Wikimedia commons.