UK economy accelerates to fastest growth in nearly two years

The United Kingdom's economic growth accelerated to an annual rate of 2.1 per cent, marking the fastest expansion since October 2022 and the strongest performance excluding the post-pandemic recovery period since December 2019. The improved figures represent a significant shift from earlier forecasts and come at a critical juncture as the government prepares key fiscal announcements. Economists have attributed part of the acceleration to increased productivity gains linked to artificial intelligence integration across British industries, suggesting the technology is beginning to yield measurable economic benefits. The stronger-than-expected growth trajectory is likely to provide political momentum for Chancellor Healey as she prepares for her pre-budget statement. The figures underline Britain's economic resilience amid global uncertainties, though analysts remain watchful of inflation pressures and interest rate implications for sustained growth momentum.