FOCUS ON BONDS AND REAL ESTATE IN THE UK 1/3

23 Jun

FOCUS ON BONDS AND REAL ESTATE IN THE UK 1/3

The UK economy started 2025 with a surprisingly strong performance, with its GDP growing by +0.7% in the first quarter, the best among the G7. This growth was mainly driven by the services sector, exports, and fixed investment. This performance significantly outpaced other G7 economies, including the Eurozone's +0.3% and the US's -0.1%. This result positions the UK as an outlier among its peers, highlighting its early-year resilience.

Key Points

  • Surprising rebound in Q1 GDP exceeds expectations
  • International uncertainty weighs on the UK economy
  • Leading indicators point to a transition
  • Real wages continue to rise
  • Household confidence fails to improve
  • More complex trajectory for inflation
  • BoE to remain on hold until September
  • The bond market offers attractive yields
  • Towards a period of stabilization for the pound
  • Listed real estate performs well in the first half of the year
  • UK stocks are risky again