In the memorable words of one official statistician, Britain’s economy was “going gangbusters” at the beginning of 2024. Unfortunately, last year appears to have ended with a whimper. The best hope now is that this pattern will be reversed in 2025, with a sluggish start giving way to a strong and sustained recovery. But the … Continue reading Is there hope for Britain’s economy in 2025?
Tag: government borrowing
What to make of soaring bond yields
The latest surge in gilt yields - which represents the cost of new borrowing by the UK government in the bond market - is yet another shock that the already fragile economy could do without. To be fair, this crisis is not entirely the making of Rachel Reeves and her October Budget. Bond yields have … Continue reading What to make of soaring bond yields
Trump’s ‘MAGAnomics’ adds to the downside risks to the UK economy in 2025
On Monday 20 January, Donald Trump will complete a remarkable comeback when he inaugurated as President of the United States for the second time. But the world economy needs to brace for another outbreak of ‘Trumponomics’ or, as the man himself puts it, ‘MAGAnomics’. So far, investors in US equities have responded positively. In part, … Continue reading Trump’s ‘MAGAnomics’ adds to the downside risks to the UK economy in 2025
UK economy has stalled but disaster not yet inevitable
First, the bad news – and there is plenty of it. Updated figures from the Office for National Statistics show that the UK economy failed to grow at all in the third quarter of the year, revised down from an increase in GDP of just 0.1%. Most forecasters, including the Bank of England, expect zero … Continue reading UK economy has stalled but disaster not yet inevitable
Plain-speaking Economics 