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UK GDP grew by 0.7% in the first quarter of 2025 – its strongest quarterly rise in a year. But while the country is currently outpacing its G7 peers and despite a partial agreement with the United States on tariffs, growth over the full year is expected to slow due to mounting global trade tensions.

UK high streets vary in both range and affordability. From Greggs’ national footprint to the dominance of Pret A Manger in London, the location and prices of different shops reveal the country’s economic, political and cultural divides.

Australia’s voters have returned the Labor Party to power – not least as geopolitical uncertainty favoured the stability of incumbency. Key areas of the renewed government’s focus will be measures on industrial innovation and skill formation to boost productivity and help to raise living standards.

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.

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.

The UK labour market data released in March 2025 show rising real wages for those in work. But there are likely to be tougher times ahead for jobseekers as fiscal policy changes start to bite.

The fast fashion industry is characterised by both overproduction and overconsumption. The sector is harmful to the environment, requiring enormous quantities of natural resources and creating substantial waste. Policy-makers could promote a more circular economy to reduce the damage.

The UK government is proposing regulatory reforms of the financial services sector as part of its agenda for boosting economic growth. The main focus is on encouraging domestic investment by pension funds and relaxing household access to credit. The chances of success are highly uncertain.

Recent increases in the UK government’s cost of borrowing have sparked debates about the public finances and the direction of economic policy. Some analysts have made misleading comparisons to the adverse bond market reactions to the previous government’s mini-budget of 2022.

UK film and TV studios are producing blockbuster hits and generating billions in revenue. But changes in the sector – including the rise of streaming, falling ad revenues and episodes of industrial action – pose challenges, with the effects felt most by small independent firms and freelance workers.

If you’re in search of Christmas gifts or a good book for yourself to read over the holidays, look no further than recommendations from the Economics Observatory.

President-elect Donald Trump has promised tax cuts in the United States. Research indicates that corporate payout policy (dividends and share buybacks) shapes firms’ financial decision-making and, in turn, the wider economy. But there are trade-offs as changes affect public spending and debt levels.

The UK’s gaming industry has boomed over the past two decades, driving job creation, export growth and technology benefits spilling over to a range of other key sectors. Continued government support could pay off handsomely in terms of tax receipts and industrial competitiveness.

UK high streets vary in both range and affordability. From Greggs’ national footprint to the dominance of Pret A Manger in London, the location and prices of different shops reveal the country’s economic, political and cultural divides.

The trade war between China and the United States will have knock-on effects on Africa, primarily from reduced demand for exports of raw materials. To protect their economies and to seize new economic opportunities, governments across the continent should promote deeper intra-regional integration.

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.

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.

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.

The quantity of consumer data to which many companies now have access means that they can personalise their goods and services, as well as optimise their operations. In this way, artificial intelligence is changing big parts of our lives – from how we shop and learn to our banking and healthcare.

Western countries imposed extensive sanctions on Russia after the invasion of Ukraine in February 2022. But the measures were unilateral and piecemeal – and while they have been effective in disrupting the Russian economy, evasion and ‘trade deflection’ through third countries limits their impact.

UK film and TV studios are producing blockbuster hits and generating billions in revenue. But changes in the sector – including the rise of streaming, falling ad revenues and episodes of industrial action – pose challenges, with the effects felt most by small independent firms and freelance workers.

If you’re in search of Christmas gifts or a good book for yourself to read over the holidays, look no further than recommendations from the Economics Observatory.

Unemployment in the UK has been historically low since the start of 2022, despite rising interest rates and falling numbers of job vacancies. A key question for monetary and fiscal policy-makers is whether this trend will continue into the future.