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

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.

Nations, regions & cities

The phoenix that never rises: what’s holding back Pakistan’s economy?

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.

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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.

Families & households

What are the effects of paid family leave programmes in the United States?

To compensate for the lack of national provision, nine US states plus the District of Columbia have launched their own paid family leave programmes, with four more in the works. Studies highlight the effects of these policies on health, fertility and employment, but there is still much to learn.

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.

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.

Public spending, taxes & debt

What are fiscal rules and how have they worked in the UK?

Since the 1990s, UK governments have set constraints on how much they can borrow to fund public spending net of tax revenues, as well as total public debt relative to GDP. These targets are required by legislation but have been frequently adjusted in response to changing circumstances or priorities.

Prices & interest rates

Why have insurance premiums gone up so much?

Higher insurance premiums for cars and homes are being driven by a mix of factors, including changing regulations, changing human behaviour and a changing climate. Insurers have to balance the need for adequate reserves for claims, maintained profitability and affordable coverage for consumers.

Business, big & small

What is crowdfunding and how is it helping small businesses in the UK?

Crowdfunding unlocks alternative financing for start-ups and small businesses by mobilising pools of small-scale investors via online platforms. The funding model spreads risk, enables innovative projects and democratises investment, allowing individuals to support causes that they care about.

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