THE BOE’S CURRENT STANCE IN THE FACE OF THE INFLATIONARY THREAT 1/3

The UK economy narrowly avoided a technical recession in late 2025 with a marginal GDP increase of just 0.1%. This underwhelming result brought total annual growth for 2025 to a modest 1%, while per capita GDP suffered its second consecutive quarterly decline, signaling a persistent erosion of individual prosperity. This lackluster performance underscores a broader structural weakness, as the economy fails to generate meaningful momentum despite the avoidance of a formal downturn.