UK Economy Statistics and Facts

United Kingdom is the world's sixth-largest economy, with a GDP of $3.73 trillion in 2025. Still, as is the case with many other developed countries, the UK is currently in economic turmoil, burdened by inflation and rising costs of living.

To paint a better picture of the current state of the country's economy, we've outlined the latest numbers and the most important data to show where exactly the UK stands today.

Key UK Economy Statistics for 2026 - Editor’s Choice

• The GDP of UK is $3.73 trillion in 2025.
• The inflation rate is expected to fall back to the 2% target by April 2026.
• The employment rate was 75.1% in early 2026.
• The UK had a total trade deficit in goods and services that narrowed to £1.8 billion in the three months to January 2026.
• House prices across the UK are expected to increase by an average of 1% to 4% in 2026.

The GDP of the UK economy is expected to grow by 1.1% to 1.3% in 2026.

(IMF)

The latest IMF projections see a slightly lower growth of 1.3% in 2026, after a 1.5% growth in 2025.

Inflation is expected to reach the 2% target in April 2026.

(KPMG)

While the inflation dropped significantly throughout 2025, it rose slightly to 3.4% in December 2025 due to energy price fluctuations before its projected return to target this year.

The household savings rate in the UK was 9.5% in late 2025.

(Statista)

Quarterly savings in UK households grew significantly in the latter half of last year; however, they are expected to moderate throughout 2026 as consumers manage higher costs.

Business investment in the UK is projected to increase by only 0.8% in 2026.

(EY)

There was a 3.7% increase in 2025, driven by large one-off projects, but the projection for this year has been hampered by global trade uncertainties and new tax measures.

Consumer spending in the UK is expected to increase by 0.9% in 2026.

(EY)

This follows a 1.0% growth in 2025, painting a stark picture of the continued economic struggles and cautious discretionary spending across the country.

The base interest rate was held at 3.75% in early 2026.

(Morningstar)

While the Bank of England cut rates four times in 2025 (down from 5.25% to 3.75%), additional cuts in 2026 remain highly unlikely due to geopolitical tensions in the Middle East.

The employment rate in the UK in early 2026 was 75.1%.

(House of Commons)

While the rate increased slightly by 0.2 percentage points in the latest quarter, the unemployment rate also edged up to 5.2% as of February 2026.

Average wages in 2025 increased by 0.4% to 0.8% when adjusted for inflation.

(House of Commons)

Last year, the public sector had a significantly higher annual growth rate in earnings at 7.2%, compared to 3.4% in the private sector.

House prices in the UK are predicted to rise by 2% in 2026.

(UK Government)

This follows a year of limited growth where the average house price ended 2025 at approximately £299,892.

Northern Ireland is expected to see the highest house price growth again in 2026.

(UK Government)

In comparison, house prices in London are expected to see the weakest growth last year and through 2026 due to stretched affordability.

In the three months to January 2026, the UK had a total trade deficit of £1.8 billion.

(Statista)

According to the latest available data, the deficit narrowed by £5.1 billion compared to the previous quarter, though the trade in goods deficit remained high at £56.6 billion.

The real estate industry represented 13.2% of all UK economic output in 2024.

(House of Commons)

The retail and wholesale industry followed in second place with 9.9% of of GVA (total gross value added).

The public sector net debt in the UK was 93.1% of the country's GDP in February 2026.

(House of Commons)

While this represents a slight decrease from the peaks of 2024, it remains at levels not seen since the early 1960s.

The public sector expenditure of the UK government for the 2025-26 financial year is estimated at £1.135 trillion.

(Statista)

Social protection remains the largest expenditure, while government borrowing for the financial year to February 2026 was provisionally estimated at 4.1% of GDP.

The National Living Wage is set to increase to £12.71 in April 2026.

(Financial Times)

The higher wage floor is expected to drive business costs and influence pay awards, which are projected to average 3% across most sectors this year.

The UK youth unemployment rate (ages 18-24) jumped to 14.0% in early 2026.

(ONS)

This represents the highest rate in five years, with approximately 575,000 young people currently out of work, an increase of 80,000 over the last quarter.

The Finance sector is leading 2026 wage growth with a projected increase of 5.0%.

(HR Datahub)

This significantly outpaces the national cross-sector average of 3.2%, as regulated roles and technical specialists continue to command a premium.