Britain’s economy grew faster than France, Italy and Germany at the start of 2026, strengthening Rachel Reeves’s claims that the UK is beginning to regain economic momentum.
Fresh figures from the Organisation for Economic Co-operation and Development showed GDP growth across the OECD bloc edged up to 0.4pc in the first quarter of 2026, compared with 0.2pc in the previous three months.
The UK was among the strongest performers in the G7, with growth accelerating from 0.2pc to 0.6pc over the quarter.
The OECD said the improvement was driven largely by stronger private consumption and increased government spending, suggesting households and the public sector both contributed to the rebound.
Only Korea recorded faster growth among reporting OECD economies, expanding by 1.7pc during the quarter.
The United States also saw growth strengthen, rising from 0.1pc to 0.5pc as investment, exports and government spending recovered.
Japan’s economy expanded by 0.5pc, while Germany recorded more modest growth of 0.3pc.
By contrast, France stagnated completely after growth of 0.2pc in the previous quarter, with falling consumer spending, weaker investment and declining exports weighing on activity.
Italy also lost momentum, slowing sharply from 0.3pc growth to just 0.1pc as domestic demand weakened.
Canada returned to growth after contracting at the end of 2025.
The figures are likely to be seized upon by Labour ministers eager to demonstrate that Britain is outperforming some of its European peers after years of economic stagnation and weak productivity growth.
Ms Reeves has repeatedly argued that economic stability and consumer confidence are beginning to improve following a prolonged period of inflation and high interest rates.
However, economists cautioned that Britain’s recovery remains fragile, with growth still heavily dependent on consumer spending and government expenditure rather than business investment or productivity improvements.
Annual growth across the OECD increased only marginally from 1.7pc to 1.8pc, underlining the sluggish pace of the wider global recovery.
Among the G7 economies, the United States recorded the strongest annual growth rate at 2.7pc, while Germany remained the weakest performer with growth of just 0.3pc.
Outside the G7, Ireland suffered the steepest quarterly contraction among reporting OECD economies, shrinking by 2pc, while Israel and Mexico both contracted by 0.8pc.
Despite the stronger UK figures, business groups warned that higher taxes, weak productivity and persistent geopolitical uncertainty continue to cloud the outlook for Britain’s longer-term growth prospects.
The Bank of England is also expected to remain cautious over interest rate cuts if stronger consumer spending risks keeping inflationary pressures elevated later this year.
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