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

Sanctions effectiveness: what lessons three years into the war on Ukraine?

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.

Audio recordings

Prices & interest rates

What are the future prospects for UK inflation?

Measures of price inflation in the UK have fallen in recent months, but this comes in part because the high rates of early 2023 have dropped out of the calculation. Domestic and geopolitical risks will affect whether inflation continues to drop over the rest of this year and beyond.

DATA HUB

Growth in UK creative industries

Since 2010, the creative industries in the UK have grown 35% – outpacing the 22% growth of the UK economy as a whole.

The fastest-growing creative sector was Design & Designer Fashion, with GVA more than doubling since 2010. Architecture and IT & software have also been strong contributors to growth, while the UK’s music, film & TV sectors have seen relatively slower growth.

Click here to read Ruth Towse on how digitalisation has changed the economics of the creative industries.

Tuesday 18 February 2025

Banks & financial markets

Bond markets and the UK’s public finances: what’s been going on?

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.

MAGAZINE

Read the latest edition of our magazine here

The oceans have become a waste-sink for plastics—just like the atmosphere is for greenhouse gas emissions. A higher carbon price may help tackle both problems.

Jobs, work, pay & benefits

How do safety concerns shape women’s opportunities in developing countries?

Women constantly face the possibility of becoming victims of sexual assault in public spaces and at work. This may deter them from pursuing better education and career opportunities. Ensuring that women are secure helps to guarantee that they will have better futures.

Public spending, taxes & debt

The UK’s public finances: is it time to reform the fiscal rules?

Boosting economic growth while maintaining sustainable levels of public spending is a huge policy challenge for the UK. The government’s self-imposed fiscal rules may themselves act as a constraint. Reforming the rules could help to revive the country’s stagnant economy.

Crime & policing

Youth violence in England and Wales: what can be done?

Youth violence has high costs – not just for the victims but for their families and communities. Tackling the crisis needs a coordinated approach of the kind deployed in response to the Covid-19 pandemic – one that includes police and the criminal justice system, but with public health at its core.

Attitudes, media & governance

Live music in the UK: what’s the state of the industry?

Superstar musicians and sold-out arena tours indicate a thriving music business in the UK. But this hides another reality – one of rising costs, administrative barriers post-Brexit, declining earnings and grassroots venues closing. The live music industry is in urgent need of tailored support.

Banks & financial markets

What can happen when economic policy-makers lose credibility?

Fears that central banks’ commitment to low inflation is weakening or that a government’s fiscal plans are uncosted, unchecked and unfunded can be highly damaging for households, businesses and the public authorities themselves. A lack of credibility is a disaster for policy-makers.

Recession & recovery

How can macroeconomic forecasting in the UK be enhanced?

Technological advances such as machine learning and big data models can improve our understanding of current economic conditions. Nowcasting models bridge the data gap between statistical releases, helping to identify trends in real time and allowing more accurate and timely policy measures.

Trade & supply chains

Globalisation and backlash: how has world trade evolved over 300 years?

Over the past three centuries, economic nationalism has ebbed and flowed: from the mercantile system that Adam Smith described in 1776 through waves of globalisation, backlash and battles for supremacy.

Productivity & growth

How can the UK revive its ailing productivity?

The UK’s poor productivity limits wage growth and better living standards. But the problem has no quick fixes. To boost productivity, policy-makers must establish and stick to a long-term strategy that includes diverse sectors – from technology and innovation to education, housing and transport.

Business, big & small

Why is the UK film and television sector struggling?

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.

Productivity & growth

The UK’s productivity gap: what did it look like twenty years ago?

How to boost UK productivity growth has long been a central concern of economic researchers and policy-makers. A report written twenty years ago highlights the continuing challenges of achieving that ambition, including the key roles of competition, investment, skills, innovation and technology.

All Answers