United Kingdom Economy

Europe & Central Asia · High income · Capital: London

Updated 17 Oct 2026

GDP Annual Growth Rate in the United Kingdom increased to 1.37 percent in Q2 2026 from 0.84 percent in Q1 2026. Inflation Rate in the United Kingdom increased to 3.09 percent in Aug 2026 from 2.81 percent in Jul 2026.

GDP Growth
1.4%
▲ +0.5 pp Q2 2026 · OECD
Inflation Rate
3.1%
▲ +0.3 pp Aug 2026 · BIS
Interest Rate
3.75%
■ 0.00 pp Sep 2026 · BIS
Unemployment
4.9%
■ 0.0 pp Jun 2026 · OECD

GDP Growth Rate

Real GDP, annual % change. Hatched bars are IMF projections.

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Inflation vs Interest Rate

Monthly data, %. Source: BIS.

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Key Highlights

  • Real GDP grew 1.4% in Q2 2026 (previous year: 0.8%).
  • Consumer price inflation was 3.1% in Aug 2026, compared with 2.8% in the previous period.
  • The central bank policy rate stood at 3.75% at the end of Sep 2026 (previous: 3.75%).
  • The unemployment rate was 4.9% in Jun 2026 (previous: 4.9%).
  • General government debt was 102.1% of GDP in 2025.
  • The IMF projects real GDP growth of 1.3% for 2026 (World Economic Outlook projection).

Main Indicators

IndicatorLastPreviousPeriodTrendSource
GDP Annual Growth Rate1.4%0.8%Q2 2026OECD
Interest Rate3.75%3.75%Sep 2026BIS
Inflation Rate3.1%2.8%Aug 2026BIS
Unemployment Rate4.9%4.9%Jun 2026OECD
Government Debt to GDP102.1%99.4%2025IMF
Balance of Trade-$50.6B-$26.9B2025World Bank
Current Account to GDP-3.1%-3.0%2025World Bank
GDP$4,002.6B$3,695.5B2025World Bank

GDP

IndicatorLastPreviousPeriodTrendSource
GDP per Capita$57,602$53,3412025World Bank
GDP per Capita PPP$64,606$62,8392025World Bank
Gross National Income$3,977.9B$3,659.2B2025World Bank
GDP from Agriculture0.6%0.6%2025World Bank
GDP from Industry16.5%17.1%2025World Bank
GDP from Manufacturing7.7%8.0%2025World Bank
GDP from Services73.1%72.5%2025World Bank
Gross Fixed Capital Formation18.9%18.7%2025World Bank
Household Consumption to GDP60.4%60.8%2025World Bank
GDP Growth Rate0.53%0.64%Q2 2026OECD

Labour

IndicatorLastPreviousPeriodTrendSource
Youth Unemployment Rate14.6%14.3%2025World Bank
Labour Force Participation Rate61.4%61.6%2025World Bank
Employment Rate58.5%58.9%2025World Bank
Population69.49M69.28M2025World Bank

Prices

IndicatorLastPreviousPeriodTrendSource
GDP Deflator Growth3.7%3.9%2025World Bank
Core Inflation Rate2.9%2.9%Aug 2026OECD
Inflation Rate MoM0.50%0.30%Aug 2026OECD
Food Inflation1.3%1.3%Aug 2026OECD

Money

IndicatorLastPreviousPeriodTrendSource
Lending Rate0.50%0.50%2014World Bank
Deposit Interest Rate4.48%3.63%1998World Bank
Broad Money Growth2.6%-2.6%2024World Bank
Foreign Exchange Reserves$214.4B$174.6B2025World Bank
Private Debt to GDP128.4%131.3%Q1 2026BIS
Government Bond 10Y Yield5.24%4.99%Sep 2026OECD
Interbank Rate3.62%3.71%Feb 2026OECD

Trade

IndicatorLastPreviousPeriodTrendSource
Current Account-$125.4B-$109.0B2025World Bank
Exports$1,224.7B$1,147.7B2025World Bank
Imports$1,275.2B$1,174.5B2025World Bank
Foreign Direct Investment$37.59B-$12.96B2025World Bank
Remittances$5.36B$4.83B2025World Bank
Terms of Trade99.295.62024World Bank
Tourist Arrivals11.10M40.86M2020World Bank
Tourism Revenues$31.66B$30.48B1998World Bank

Government

IndicatorLastPreviousPeriodTrendSource
Government Budget-5.3%-6.0%2025IMF
Government Revenues to GDP38.3%38.8%2024IMF
Government Spending to GDP44.0%44.8%2024IMF
Tax Revenue to GDP26.9%26.9%2024World Bank
Military Expenditure2.35%2.44%2025World Bank

Business

IndicatorLastPreviousPeriodTrendSource
Industrial Production0.6%-0.2%Jul 2026OECD
Composite Leading Indicator101.38101.14Sep 2026OECD
Business Confidence101.4599.62Sep 2026OECD

Consumer

IndicatorLastPreviousPeriodTrendSource
Retail Sales YoY2.7%1.8%Aug 2026OECD
Consumer Confidence100.91100.23Sep 2026OECD

Housing

IndicatorLastPreviousPeriodTrendSource
Residential Property Prices2.9%1.2%Q2 2026BIS

United Kingdom economy explained in simple words

Size of the economy

The economy of the United Kingdom produced goods and services worth $4,002.6B in 2025, making it the 5th largest of 214 economies with data.

With a population of about 69.5 million, GDP per person is $57,602. The World Bank classifies United Kingdom as a “high income” economy.

Economic growth

Real GDP grew 1.4% in 2026, compared with world growth of 3.5% (IMF).

Over the last 10 years growth averaged 1.2% a year, ranging from 0.4% to 1.9%.

The IMF projects growth of 1.3% in 2026.

Prices and interest rates

Consumer price inflation was 3.1% in Aug 2026 (reference: the Bank of England’s 2% target).

The central bank policy rate was 3.75% at the end of Sep 2026.

The difference between the two — the real interest rate — is about 0.66%.

Jobs

The unemployment rate was 4.9% in Jun 2026 (world: 4.8%).

About 61.4% of people aged 15 and over are in the labour force (working or looking for work).

Government finances

General government debt was 102.1% of GDP in 2025, compared with a median of 52.9% across 191 economies.

The government budget balance was -5.3% of GDP (2025) — a deficit, meaning spending exceeded revenue.

Trade and external position

The current account was -3.1% of GDP in 2025 — a deficit with the rest of the world.

Exports of goods and services were $1,224.7B and imports $1,275.2B.

Foreign exchange reserves (including gold) stood at $214.4B.

Structure of the economy

By sector, value added is split roughly as: services 73.1%, industry 16.5%, agriculture 0.6% of GDP.

How to read this page

The four boxes at the top show the most-watched numbers: GDP growth (how fast the economy is expanding), inflation (how fast prices are rising), the central bank policy rate (the base cost of borrowing) and unemployment (the share of job-seekers without work). The small arrow shows the change from the previous reading.

The tabs group all available indicators by topic — GDP, labour, prices, money, trade, government and housing. Each row shows the latest value, the previous value, the period it refers to, a small trend line and the source. Click any indicator to open its full history, chart, statistics and comparison with other countries.

Monthly and quarterly figures come from national statistics offices and central banks — via the OECD, the Bank for International Settlements (BIS) and, for India, the Ministry of Statistics (MoSPI); annual figures come from the World Bank and the IMF. Different indicators are published at different times, so the periods shown can differ.

Frequently asked questions

What is the GDP growth rate of United Kingdom?
The latest GDP growth rate of United Kingdom is 1.4% (Q2 2026), compared with 0.8% in the previous period. Source: OECD — Organisation for Economic Co-operation and Development.
What is the inflation rate of United Kingdom?
The latest inflation rate of United Kingdom is 3.1% (Aug 2026), compared with 2.8% in the previous period. Source: Bank for International Settlements (BIS).
What is the interest rate of United Kingdom?
The latest interest rate of United Kingdom is 3.75% (Sep 2026), compared with 3.75% in the previous period. Source: Bank for International Settlements (BIS).
What is the unemployment rate of United Kingdom?
The latest unemployment rate of United Kingdom is 4.9% (Jun 2026), compared with 4.9% in the previous period. Source: OECD — Organisation for Economic Co-operation and Development.
What is the government debt to GDP ratio of United Kingdom?
The latest government debt to GDP ratio of United Kingdom is 102.1% (2025), compared with 99.4% in the previous period. Source: IMF — World Economic Outlook.

Data are sourced from official international organisations (IMF, World Bank, BIS) and national authorities, and are shown for educational and informational purposes only. They are not investment advice and no recommendation is made. Figures may be revised by the source; IMF figures for the current and future years are projections. This page was last updated on Saturday, October 17, 2026.