UK economy grew unexpectedly by 0.5% in February, latest figures show
The UK economy was seen to grow by 0.5% in February - an unexpected figure that has even surprised economists, according to the latest figures.
Listen to this article
Figures released by the Office for National Statistics show the UK economy grew at its fastest pace for more than a year against predictions in the run-up to the Iran war.
The better-than-expected figures will come as a boost to Chancellor Rachel Reeves, with predicted figures forecasting GDP to rise by just 0.1% in February following no growth in January.
Economists had predicted markets to grow by a far more modest 0.1% increase in GDP.
Data shows that real gross domestic product (GDP) grew by 0.5%, following a growth of 0.3% in the three months to January 2026, a figure that was revised up from previous growth predictions of 0.2%.
Read more: Tech bosses summoned to Downing Street as PM urges new protections for children on social media
It follows a slowdown, after no growth was reported in the three months to December 2025.
The figures come amid forecasts that Britain’s output will be hardest hit this year by the fallout from the Iran war and soaring energy costs.
A stark economic outlook report from the International Monetary Fund (IMF) earlier this week that showed the UK facing the biggest downgrade to growth among the G7 group of countries, with 0.8% forecast for 2026, down sharply from the 1.3% predicted in January.
Chief Secretary to the Treasury James Murray said: “Growth only happens when the economy is on solid ground.
“That’s why in a changing world our plan to restore stability, boost investment and deliver reform is the right one to build a more stronger more resilient Britain.
“At the IMF meetings in Washington, the Chancellor has set out how we will go further and faster to boost Britain’s competitiveness and build a stronger, more resilient economy, keeping costs down for families and businesses and taking back control of our energy costs as today we cut bills by up to 25% for 10,000 British businesses.”