UK Economy Grows Unexpectedly 0.5% in February, Faces Tariff Challenges

The UK economy unexpectedly grew by 0.5% in February, surpassing predictions of no growth, largely driven by a rebound in manufacturing and production. This growth follows a revised estimate indicating that January's performance was better than initially thought, with overall growth for the past three months now at 0.6%. Despite this positive news, experts warn that looming challenges such as a 10% tariff on British goods entering the US, rising household bills, and increased business taxes could hinder future growth. Economists predict ongoing volatility and weak momentum in the economy through 2025, as global uncertainties persist. While government officials express cautious optimism, they acknowledge the need for strategic measures to sustain economic improvement amidst these challenges. The situation puts pressure on the government and the Bank of England to navigate a delicate balance between fostering growth and managing external economic pressures.