UK GDP held at 0.8% but deficit disappoints

clock

Sterling has fallen back below $1.69 after worse-than-expected borrowing figures disappointed those investors hoping for further confirmation the economy is back on track.

Public sector net borrowing figures from the Office for National Statistics - released at the same time as a second estimate of Q1 GDP that confirmed growth of 0.8% - show the government borrowed £11.5bn this April, up £1.9bn year-on-year. The figure, which excludes the "temporary effects of financial interventions" and other external factors, was worse than economists' expected figure of around £8.5bn. The pound fell against the dollar in response, dropping from $1.6909 to $1.687 following publication of the figures, but remains near at multi-year highs. "Since the OBR expects bor...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Economics / Markets

Bank of England meets expectations and cuts rates to 4%

Bank of England meets expectations and cuts rates to 4%

Lowest level in two and a half years

Isabel Baxter
clock 07 August 2025 • 4 min read
Think tank warns UK fiscal hole could surpass £50bn by 2030

Think tank warns UK fiscal hole could surpass £50bn by 2030

Government not on track to meet ‘stability rule’

Sorin Dojan
clock 06 August 2025 • 1 min read
UK capital markets need to close gap between 'perception and reality' - Poppy Gustafsson

UK capital markets need to close gap between 'perception and reality' - Poppy Gustafsson

Speaking at IA annual conference

Sorin Dojan
clock 26 June 2025 • 2 min read