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ForexMedium•12 February 2026•

1 min read

UK Economy Shows Weakness in 2025, Recovery Anticipated from 2026

Donald Trump, US and Iran maps, oil barrels, pipelines, derricks, and rising charts with fire and arrows.

The UK economy concluded 2025 on a weak note, with its Gross Domestic Product (GDP) registering a modest quarterly growth of just 0.1%. This subdued performance was notably influenced by underperforming consumer spending and industrial output compared to peer economies, as highlighted by Nomura's George Buckley. Despite this recent deceleration, a consensus is emerging among key financial institutions regarding the future trajectory. Nomura, alongside the Bank of England (BoE), and broader market expectations, anticipates a significant recovery in UK economic growth. This upturn is projected to commence in 2026 and continue into subsequent years, signaling a potential rebound from current challenges. The mixed outlook suggests cautious optimism for the British Pound and UK equities, balancing past weakness with future growth prospects.