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

What are the consequences of market power in supply chains?

Policy-makers understand that when firms have market power over the goods and services that they sell, consumers suffer. The consequences of market power in supply chains are less clear, but they also could harm consumers. Competition authorities are examining the research evidence.

Audio recordings

Nations, regions & cities

Lessons from Andalusia: how can policy-makers promote economic growth?

Amid rapid technological change and heightened competition, Europe must re-ignite economic growth. Evidence from Andalusia – Spain’s poorest region – highlights the need to make full use of a region’s productive capabilities to forge new competitive advantages and raise living standards.

DATA HUB

UK military operation spending

Over the past two years, the UK has spent £4.6 billion on military operations in Ukraine.

Previously, operational spending had remained low since 2016, following a £6 billion peak in 2010, driven largely by the war in Afghanistan.

Wednesday 19th March 2025

News

Catch me if you can

Within the world’s most advanced economies – including Germany, Spain, the UK and the United States – there are regions that have fallen behind or failed ever to catch up with the most prosperous places. To address this challenge, policy-makers could take lessons from history as well as one other.

MAGAZINE

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Despite an abundance of valuable raw materials and breathtaking natural beauty, the western US state of Wyoming lags its neighbours in terms of economic performance. This is largely due to a lack of substantial urban centres, driven in part by excessively restrictive regulations on housing.

Nations, regions & cities

How has deindustrialisation affected living standards in the UK?

Britain’s industrial decline has reshaped its economy and altered people’s lives. From job losses to worsening health, the impact of deindustrialisation runs deep, with scars that stretch across generations and regions.

Lessons from history

Germany’s reunification: what lessons for policy-makers today?

Germany’s experience of reunification suggests that economic reintegration can take generations, not years – so leaders should avoid making unrealistic promises. Success requires not just material convergence, but also attention to social cohesion, institutional legitimacy and cultural recognition.

Public spending, taxes & debt

UK national security: what have we learned from strategic defence reviews?

The history of British defence policy has been one of constant imbalance between resources, capability and commitments, interspersed with reviews that fail to solve the fundamental problems. These appraisals are typically done at times of economic crisis when public expenditure must be controlled.

Jobs, work, pay & benefits

What do we know about the effects of military conscription?

Mounting national security threats have led a number of European countries to consider reinstating mandatory military service. Proponents argue that it would bolster national defence and boost citizenship among young people. But evidence on either effect is scarce or points to the opposite outcome.

News

China crisis

Headlines about China are dominated by the vagaries of trade war with the United States. Beyond those battles, there are big issues around consumer spending, the real estate market, the Belt and Road Initiative, and the role of technology in the country’s growth prospects and national security.

Nations, regions & cities

How did semiconductors become so central to Taiwan’s economic progress?

Taiwan is a highly developed economy that has experienced periods of rapid growth. Policies that championed industries such as semiconductor manufacturing have contributed enormously to the island’s economic progress. Relations with China remain a big economic and geopolitical concern.

Science, technology & innovation

What’s happening in China’s semiconductor industry?

China’s semiconductor industry faces a tension between self-sufficiency and global integration, engaging in open innovation where possible, but pivoting to security-driven self-reliance when necessary. Progress has been made, but big challenges remain, particularly with growing geopolitical risks.

Productivity & growth

The UK’s productivity gap: what did it look like twenty years ago?

How to boost UK productivity growth has long been a central concern of economic researchers and policy-makers. A report written twenty years ago highlights the continuing challenges of achieving that ambition, including the key roles of competition, investment, skills, innovation and technology.

Nations, regions & cities

The Belt and Road Initiative: what impact on China and the global economy?

The Belt and Road Initiative lies at the heart of China’s outward economic engagement, providing opportunities for Chinese firms abroad and boosting infrastructure and development in recipient countries. Future challenges include governance, debt sustainability, and social and environmental effects.

Nations, regions & cities

How is China’s economy faring?

China’s economy has suffered from slow consumer spending and a slump in the real estate market. The unpredictable trade war with the United States risks further economic problems, but the current pause in tariff increases plus persistent stimulus from Beijing are keeping the worst outcomes at bay.

All Answers