It’s been a tough start to the year. But there’s still a good chance that the economy will grow by more this year than last year. And a bigger fall in interest rates than most people expect may well lay the foundations for an even better 2026.
The economy had no momentum at all coming into 2025. 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. 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. That would leave it at risk of a mild recession.
