GDP measures the value of everything the UK produces. It grew 0.6% in the first quarter of 2026, the fastest pace in a year.
Last reviewed: 1 July 2026
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MONEY GUIDES |
Gross domestic product (GDP) measures the total value of goods and services produced in the UK over a given period. It is the main official measure of how the economy is performing.
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KEY FACTS
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How GDP is measured
The Office for National Statistics (ONS) calculates GDP using three main approaches that should, in theory, arrive at the same total: output (the value businesses add), expenditure (total spending across the economy), and income (total income earned). GDP is published monthly, quarterly, and annually, with quarterly and annual figures revised as more complete data becomes available.
Recent UK GDP growth
| Period | Quarterly Growth | Notes |
|---|---|---|
| Q4 2025 (Oct-Dec) | 0.1-0.2% (revised) | Weak quarter |
| Q1 2026 (Jan-Mar) | 0.6% | Fastest growth since Q1 2025 |
| Full year 2025 | 1.3% (revised) | Annual growth |
Why a single quarterly figure is easy to misread
Early GDP estimates are provisional and get revised as more data comes in, sometimes by a few tenths of a percentage point. Commentators have also noted that the Q1 2026 figures were reported before the full effect of a Middle East-related energy price shock had fed through, meaning the following quarter could look noticeably different.
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Worked Example: Growth rate versus GDP level A 0.6% quarterly growth rate does not mean the economy is 0.6% bigger than it was a year ago. Year-on-year, UK GDP was estimated to be roughly 0.9-1.1% higher in Q1 2026 than in Q1 2025, a different figure from the quarter-on-quarter growth rate, and the two are sometimes confused in casual reporting. |
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This article is general information, not financial or legal advice. Rules and limits can change: always check the current position with the regulator or scheme concerned before relying on any figure here. |
Does GDP measure everyone's individual financial wellbeing?
No, GDP measures total economic output, not how that output is distributed or how individual households are actually faring, which is why other measures like real household disposable income are tracked alongside it.
Why do GDP figures get revised after they are first published?
Early estimates use incomplete survey data. As more complete business and tax data becomes available, the ONS updates earlier figures, sometimes by several tenths of a percentage point.
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Related Guides |
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Sources |
