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

How is India's trade landscape shaping up for the future?

After independence in the late 1940s up to the early 1990s, India’s trade policy was transformed: from protectionism to a liberalised economy. As the country moves towards greater global economic integration, remaining challenges include improving infrastructure and diversifying trade relations.

Nations, regions & cities

Argentina under a new government: what are the big economic challenges?

With a new administration, Argentina stands at a potential turning point. By implementing aggressive fiscal and monetary reforms, President Milei’s government aims to stabilise the economy and reduce inflation. The likely success of these measures in sparking economic recovery is an open question.

Nations, regions & cities

The BRICS countries: where next and what impact on the global economy?

Brazil, Russia, India, China and South Africa, originally an informal group of the leading emerging economies of the early 2000s, have since experienced very different growth paths. Their significance in the global economy at a time of considerable geopolitical uncertainty remains an open question.

Nations, regions & cities

How are the UK’s devolved nations faring ahead of the general election?

Over the current parliamentary term, Wales, Scotland and Northern Ireland have each faced unique challenges as well as common ones, such as rising economic inactivity. Measures of output, productivity and the labour market indicate where the devolved nations could improve their economic prospects.

Prices & interest rates

Update: how is the war in Ukraine affecting global food prices?

The protracted conflict in Ukraine cannot keep food prices rising perpetually. Costs have started receding in the global market, as well as in several advanced economies. But food inflation persists in many developing countries, largely due to domestic challenges that go beyond the Russian invasion.

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Pakistan’s recent election has further eroded trust between citizens and the state. The economy continues to fall behind its Asian neighbours, with low rates of productivity growth and an unsustainably high burden of external debt. There are no signs these challenges will be addressed any time soon.

Science, technology & innovation

How can public investment in research improve UK economic performance?

Public investment in scientific endeavour is essential for the success of UK business and industry – and, more broadly, for a productive economy, a healthy society and a sustainable world. A report written early in the 2010s laid out the evidence on the central role of research for our future.

Families & households

How might house prices affect workers’ productivity in OECD economies?

Higher house prices may be partly to blame for the sluggish growth of labour productivity in the OECD countries in recent decades. The adverse impact seems to be less severe in more complex economies – those that produce a greater diversity of products based on specialised know-how.

Science, technology & innovation

What might be the economic impact of AI tools like ChatGPT?

Generative artificial intelligence tools are changing the way we use the internet. Some people are concerned that such systems could replace countless jobs; others expect quick productivity gains. As with past technological innovations, change is likely to be less dramatic than the hype suggests.

Business, big & small

How has digitalisation changed the economics of the creative industries?

Digital technologies have had a profound effect on the production and consumption of creative goods and services – from archives to video games. They have also challenged how economists analyse the creative industries and beyond, with the growing importance of platforms and network effects.

Communicating economics

#studentviews: How can UK policy-makers stop young people from vaping?

The UK proposes to introduce an excise duty on e-cigarettes, with the primary goal being to reduce their consumption. The policy’s effectiveness will depend on whether the price increase is enough to deter people from buying these products – and whether an overall smoking ban is implemented.

Pensions, savings & investment

Should the state pension age go up in countries with ageing populations?

In the developing world, falling fertility and rising life expectancy are leading to ageing populations. This has big implications for public spending, including on pensions. In response, many countries are raising the state pension age and/or debating whether it should go up further.

Business, big & small

How did UK small and medium-sized enterprises manage during the pandemic?

Start-ups and smaller companies were disproportionately affected by the economic shock from Covid-19. Despite their limited access to private sources of finance, many were able to stay afloat because they adapted their business models and made use of government loan schemes.

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