UK Treasury Minister Tomlinson on GDP Figures

UK’s Q4 GDP growth fell below forecasts, expanding just 0.1% as business investment contracted and service-sector activity stalled, marking weaker-than-expected economic performance. The sluggish data intensifies political pressure on Prime Minister Keir Starmer, whose government faces scrutiny over economic management amid persistent stagnation in key sectors. Treasury Minister Daniel Tomlinson countered pessimism, asserting the economy is "turning a corner," citing unspecified early signs of recovery despite the disappointing quarterly figures. The decline in business investment—down for the third consecutive quarter—signals lingering caution among firms, undermining broader growth prospects and policy confidence. Analysts warn prolonged weakness in services, which dominate UK output, could delay recovery, complicating Starmer’s efforts to stabilize growth ahead of potential fiscal adjustments.