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

How might a wider Middle East conflict affect the global economy?

The world economy is underperforming as a result of tight monetary policies, weaker global trade, a slowing Chinese economy and uncertainty around the US election. An escalation of conflict in the Middle East could increase uncertainties, harming inflation reduction efforts and hurting growth.

Audio recordings

Transport & infrastructure

Visitor caps: what potential impact on the world tourism industry?

Caps on the numbers of visitors allowed at certain destinations aim to relieve pressure on hotspots of overtourism. Their introduction presents an opportunity for other places to attract more tourists and students, boost their economies and promote a more sustainable and equitable tourism industry.

DATA HUB

Mapping protectionism: average tariffs worldwide

President Trump has declared April 2nd "Liberation Day in America". This map shows average tariff rates at the start of the trade war that is reshaping global trade.

Click on the map to read Brian Varian on what economic history can tell us about protectionism's impact on the British economy

Trade & supply chains

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.

MAGAZINE

Read the latest edition of our magazine here

Tomorrow’s spending review will set out government spending plans for the NHS, housing, national defence, the police, and other public services. What should we expect?

Nations, regions & cities

What’s happening in Bangladesh’s garment industry?

Bangladesh is well-known for its low-cost production of textiles and clothing, with much of the country’s recent development resting on rapid growth in the garment industry. But behind this progress is an unsustainable reliance on low pay and poor working conditions, particularly for women.

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.

Data stories

What’s happening with jobs, vacancies and pay in the UK?

The latest UK labour market data paint a worrying picture. Unemployment is at its highest level since the pandemic; wage growth is slowing; and vacancies continue to fall. But it’s not all bad news: the slowdown in pay growth helps to ease upward pressures on inflation.

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.

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.

Nations, regions & cities

Lagging regions: what can policy-makers learn from Wyoming?

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.

All Answers