The UK’s latest gross domestic product (GDP) figures are set to be released on Friday, providing yet another indication about the direction of the economy.
At 7:00 a.m. tomorrow, the Office for National Statistics (ONS) will release its monthly GDP estimates, which signal the size and growth of the UK economy across recent months.
Although the first quarterly UK figures for 2025 revealed that GDP grew by 0.7 per cent on the previous quarter, there are concerns that the UK economy simply isn’t growing fast enough.
Tumultuous US trade tariffs, a weakening pound sterling and rising inflation may suggest that the economic outcome is looking uncertain.
The latest GDP announcement comes just over a month after economists revealed that the UK economy had shrunk more than expected, which Chancellor Rachel Reeves expressed at the time as being "clearly disappointing".
"Our number one mission is delivering growth to put more money in people's pockets through our Plan for Change, and while these numbers are clearly disappointing, I'm determined to deliver on that mission,” she told the BBC.
She also added: "We're investing in Britain's renewal to make working people better off".
So what exactly is GDP and how does it impact spending and the cost of living?
Here’s everything you need to know.
What is Gross Domestic Product (GDP)?
GDP stands for gross domestic product and is a measure of the size and health of a country’s economy over a period of time (usually one quarter or one year). It is also used to compare the size of different economies at different points in time.
Goods are things such as a new washing machine, or milk that’s bought in the supermarket. Services include a haircut from a hairdresser or repairs to your home by your plumber.
However, gov.uk explains that it’s only the final goods and services that are sold that matter for overall GDP.
For example, if tyres roll off a production line, and are sold to a car manufacturer, the value of the tyres isn’t included in GDP, it’s reflected in the value of the car.
The more you pay, or the market value of that good or service, is what’s important, as these amounts are added together, in order to get overall GDP.
When GDP goes up, the economy is growing, meaning people are spending more and businesses are expanding. For this reason, GDP growth, which is also called economic growth, or simply “growth” — is a key measure of the overall strength of an economy.
What is Labour going to do to boost the economy?
Last year, Ms Reeves said that “a decade of national renewal has begun” and hoped this is the first of many pieces of good news heading her way.
But by July 2024, Reeves had adopted a more sobering stance, saying: “I also just need to be really clear and honest about the scale of the challenge that we’ve inherited with the public finances.”
“We’re going to have to make difficult decisions. We need to fix the foundations before we can start rebuilding things in Britain.
“But unlike the previous government, I am going to be honest about the scale of the challenge. I’m going to level with people.”
The economic outlook has been fraught with challenges as the country entered 2025, with the economy not looking as strong as many had hoped.
Government debt is rising, and the Office for Budget Responsibility recently warned that: “The UK public finances are in an unsustainable position in the long run. The UK cannot afford the array of promises that it has made to the public.”
What GDP means for you
GDP affects ordinary Brits in several ways, including through employment opportunities and the cost of living.
Signs that the economy is growing are usually welcomed, but it’s not always necessarily good news.
In a period of GDP growth, businesses tend to do well and, on paper, are more likely to employ new people, so there’s a chance that it contributes to job growth.
But if the announcement reveals that GDP has risen, this also signals to businesses that there is demand for the product, so they might also raise their prices (inflation).
GDP growth is also usually associated with rising wages, but again, the reality is far from clear-cut. In 2025, real wages in the UK haven’t increased as much as GDP, and many households are struggling.
With just 50 families owning more wealth than half of the UK population, GDP growth doesn’t tend to translate into even distribution among Brits and doesn’t guarantee improved living standards.
On its own, GDP growth can sound promising, but it likely doesn’t mean much for regular voters who continue to see their bills increase but their wages stagnate.
