Economics Observatory | Questions and answers about coronavirus and the UK economy

The airport economist: how is southern India responding to the trade war?

Bengaluru and Chennai, two of southern India’s most vibrant cities, are emblematic of the country’s resurgence as a global economic powerhouse. With tariff barriers being raised in China and the United States, the Asian sub-continent may offer alternative opportunities for exporters and investors.

Audio recordings

Trade & supply chains

The airport economist: what’s happening in Taiwan’s economy?

Taiwan is close to being in the world’s 20 biggest economies by GDP. Trade and global connectivity are central, not least given the country’s key role in the global semiconductor industry. It also has a strong commitment to the environment and the economic opportunities around renewable energy.

DATA HUB

Baconomics: the average price of a Full English

How have the prices of breakfast staples changed since 1996?

The average prices of sliced white bread and eggs have increased by over 150%. Following closely, tomato prices rose by 133% and pork sausages by 124%. In the same period, the average price of bacon has increased by 50% – recent years have been particularly volatile with an 11% rise since 2022. Mushroom prices have remained relatively stable over the last 20 years, falling by 3.1%.

Across all items required for a basic Full English breakfast, a general upward trend in prices is evident, consistent with inflationary pressures over time. Periods of particularly notable food inflation were observed during the 2008 Financial Crisis and in 2023. Fortunately for Full English fans, prices have stabilised this year.

Attitudes, media & governance

What are the big economic issues in Australia’s federal election?

On 3 May, Australia’s voters choose their next government. Both the incumbent Labor Party and the Liberal-National Coalition are campaigning on promises to tackle the cost of living and issues around energy, housing and immigration. But the dominant theme is how to respond to the Trump trade war.

MAGAZINE

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Countries that have access to vast amounts of renewable energy – such as Mexico – may be able attract companies to relocate by offering cheaper and cleaner production. But for such ‘powershoring’ to succeed, there needs to be competitive renewable energy capacity and strong trade links.

Pensions, savings & investment

Is gold a safe haven for investors?

The price of gold has risen in recent years, highlighting the role of this precious metal as a stable investment. While the value of gold is resilient and protected from inflation, its stability is not guaranteed in times of crisis.

Lessons from history

What’s the historical context for Britain’s low productivity growth?

The British industrial revolution brought about the transformation in productivity that created modern economic growth and raised standards of living across the globe. Yet the country has long struggled to sustain productivity growth that compares favourably with other advanced economies.

Data stories

What is happening to UK prices?

UK inflation has fallen more than expected, with lower costs for petrol offsetting rises in clothes prices. But this month’s data pre-date sharp increases in other regulated bills, including energy, water and council tax. Also looming are the effects of tariff wars and mounting economic uncertainty.

Data stories

The UK labour market: what’s happening with wages and jobs?

The UK labour market continues to send out mixed signals. The unemployment rate remains stable and there has been sustained wage growth across the economy. But vacancies are falling steadily, having recently slipped below pre-pandemic levels.

Data stories

What do recent UK GDP data suggest about the potential impact of tariffs?

Unexpected economic growth in February is positive news for UK policy-makers. But the latest GDP data release pre-dates the imposition of tariffs on goods exports to the United States. How these protectionist measures will affect the UK economy remains to be seen.

Productivity & growth

The UK’s new industrial strategy: what can we learn from past policies?

A new report from the Competition and Markets Authority examines the record of industrial policies in the UK and across a range of comparator countries, their effectiveness in boosting productivity, and the characteristics of the UK sectors most likely to drive future economic growth.

News

Liberation day

Last week’s announcement of sweeping US tariffs will have a big impact on global trade. The method used to calculate the tax rates to be charged on imports from individual countries has surprised economists. For the UK, cars, pharmaceuticals and machinery are the sectors most likely to be affected.

Trade & supply chains

Foreign and domestic protectionism: what impact on the British economy?

In the late 19^th century, Britain faced rising protectionism in some of its key export markets. Then, in the early 20^th century, the country itself embraced a protectionist trading agenda. These experiences had long-term consequences for the structure and productivity of the national economy.

Trade & supply chains

Globalisation and backlash: how has world trade evolved over 300 years?

Over the past three centuries, economic nationalism has ebbed and flowed: from the mercantile system that Adam Smith described in 1776 through waves of globalisation, backlash and battles for supremacy.

News

Style over substance

The fashion industry has changed dramatically over the past century, transformed from a collection of small Parisian boutiques into a multi-billion dollar international network of e-commerce giants. But today’s widespread availability of cheap garments comes with heavy human and environmental costs.

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