UK Economic Slowdown Sparks Concerns Amid Weak Growth and Rising Job Cuts
The UK economy showed alarming signs of deceleration following Chancellor Rachel Reeves's late-November 2025 budget, with GDP growth stagnating at 0.1% in November. Early December indicators point to continued weakness, as Barclays reported a 1.7% year-over-year decline in card spending—a drop comparable to lockdown-era February 2021 levels.
Business confidence plunged to a three-year low as companies announced over 33,000 job cuts in the four weeks to mid-December. The retrenchment was particularly visible in discretionary spending, with clothing and dining sectors bearing the brunt of consumer pullbacks.
Market analysts now question whether the traditional cryptocurrency safe-haven trade might gain traction among UK investors seeking alternatives to weakening sterling-denominated assets. Historically, Bitcoin and ethereum have seen increased demand during periods of economic uncertainty and currency instability.
