Economics Observatory | Insights on the UK and global economy

Greek tragedy: how does weak regional growth affect the wider UK economy?

Beneath the UK’s poor fiscal position sits an even more alarming problem: several regions have a budget deficit larger than Greece did in 2009. Spending cuts alone won’t solve this problem. The big cities also need to grow their tax bases – to reduce both regional deficits and the national deficit.

Data stories

World Cup 2026 quarterfinals: is football coming home?

With just eight teams remaining in the tournament, Argentina have a 36% chance of lifting the trophy, Spain are at 18%, France at 17% and England at 15%. Scorecasting analysis suggests that the most likely result of England’s encounter with Norway is a 2-1 victory for Harry Kane and his team-mates.

Public spending, taxes & debt

Does the UK’s defence investment plan deliver?

A recurrent refrain in commentaries on UK defence policy over decades is the imbalance between resources, commitments and capabilities. Unwillingness to make key decisions about money and cuts means that the defence investment plan has failed to correct that imbalance – so the refrain will continue.

DATA HUB

Wimbledon 2026: winning prize money by event

Wimbledon prize money has risen dramatically since the Open Era began. Champions now earn £3.6m each in 2026, up from just £2,000 (men) and £750 (women) in 1968. This year's prize fund rose 20% to £64.2m amid player pressure over revenue sharing.

The prize pool represents around 15% of Wimbledon's total revenue, up from 13% in 2025, but still short of the 16% interim target called for by leading players.

Data stories

World Cup 2026: should Scotland have done better?

Scotland’s unwanted record of being the only team with as many as nine World Cup appearances never to have reached the knockout stage continues. Their fans look on enviously as other nations of comparable and smaller populations have fought on in the competition, some of them doing so consistently.

MAGAZINE

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Action to address climate change can drive strong, sustainable growth. The state is central in setting the direction of change and mobilising investment and innovation to achieve it. But time is not on our side. Research to guide policy has never been more urgent; it must proceed alongside action.

Data stories

The World Cup 2026 round of 16: is football coming home?

Scorecasting analysis suggests that the likeliest match winners in the round of 16 are Argentina, Belgium, Brazil, Colombia, England, France, Morocco and Spain. The altitude in Mexico City will be something of a leveller, but it seems unlikely to leave England’s game against Mexico as a toss-up.

Jobs, work, pay & benefits

Beyond wages: what makes a good job?

People’s wellbeing at work is influenced by various features of their jobs, including autonomy, intensity and prospects. Researchers use surveys to track these dimensions of working life and measure their contribution to social progress. Many of them cannot be improved through economic growth alone.

Data stories

The World Cup 2026 knockout stages begin: is football coming home?

Europe and South America are overwhelmingly likely to provide the winner of the tournament – but there is a 3% chance of an African country lifting the trophy. Argentina remain by some distance the most probable champions, at 33%, followed by France and Spain, both at 12%, and England, at 9%.

Attitudes, media & governance

The fear of strangers: why do some people reject immigration?

Exaggerated anxiety followed by gradual accommodation is one of the most consistent features of Western immigration history – with first Catholics, then Jews and now Muslims feared. In thinking about issues of cultural difference and social cohesion, we need a path between alarmism and complacency.

Productivity & growth

Have the UK’s northern cities really experienced a productivity miracle?

While official data points to a ‘productivity miracle’ in several large northern cities since 2019, a closer look suggests otherwise. This serves as a reminder to sense-check any data before using it, regardless of the source.

Data stories

World Cup 2026 final group matches update: is football coming home?

With the last round of group games beginning, the likelihood of pre-tournament favourites Argentina lifting the trophy has risen to 31%, with Spain now at 13%, France 11% and England 9%. England have a 50% chance of reaching the quarterfinals if they top their group, but 30% if they come second.

Prices & interest rates

The good, the bad and the ugly: what scenarios for UK inflation?

What happens in the Persian Gulf will be crucial for the path of inflation in the UK over the next 12 months. The most desirable outcome will happen if the peace deal holds, the Strait of Hormuz is re-opened and remains open, and the damage to energy infrastructure in the region is limited.

Schools, universities & training

France’s socio-economic attainment gap in schools: how might it be closed?

France’s educational system spends heavily but delivers unequal outcomes for pupils, mainly driven by differences in their social background. A targeted, low-cost policy framework, combining tutors and adaptive technology, could help to change that without new legislation or major fiscal commitment.

Business, big & small

The UK’s new industrial strategy: what does it mean for Manchester?

To succeed, the industrial strategy needs to build strong local ecosystems in places where the eight priority sectors can thrive. The example of Greater Manchester shows why investment must be joined-up and focused on making the city-region a more productive place to do business across the board.

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