It’s been a tough start to the year.
After a burst of growth in the first half of 2024, it looks as though the economy didn’t grow at all in the second half of last year.
Although a lot of the rise in gilt yields since the start of the year has already been reversed, borrowing costs for businesses, households (think mortgages) and the government will probably be a little higher as a result.
But there’s still a good chance that the economy will grow by more this year than last year.
In fact, in mid-February when the figures for the end of 2024 are released, we might find out that the economy shrunk in Q4 of last year.
