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

How could green energy policy boost Mexico’s economy?

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.

Audio recordings

Pensions, savings & investment

Is gold a safe haven for investors?

The price of gold has risen in recent years, highlighting the role of this precious metal as a stable investment. While the value of gold is resilient and protected from inflation, its stability is not guaranteed in times of crisis.

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

Lessons from history

What’s the historical context for Britain’s low productivity growth?

The British industrial revolution brought about the transformation in productivity that created modern economic growth and raised standards of living across the globe. Yet the country has long struggled to sustain productivity growth that compares favourably with other advanced economies.

MAGAZINE

Read the latest edition of our magazine here

UK inflation has fallen more than expected, with lower costs for petrol offsetting rises in clothes prices. But this month’s data pre-date sharp increases in other regulated bills, including energy, water and council tax. Also looming are the effects of tariff wars and mounting economic uncertainty.

Data stories

The UK labour market: what’s happening with wages and jobs?

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.

Data stories

What do recent UK GDP data suggest about the potential impact of tariffs?

Unexpected economic growth in February is positive news for UK policy-makers. But the latest GDP data release pre-dates the imposition of tariffs on goods exports to the United States. How these protectionist measures will affect the UK economy remains to be seen.

Productivity & growth

The UK’s new industrial strategy: what can we learn from past policies?

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.

News

Liberation day

Last week’s announcement of sweeping US tariffs will have a big impact on global trade. The method used to calculate the tax rates to be charged on imports from individual countries has surprised economists. For the UK, cars, pharmaceuticals and machinery are the sectors most likely to be affected.

Trade & supply chains

Foreign and domestic protectionism: what impact on the British economy?

In the late 19^th century, Britain faced rising protectionism in some of its key export markets. Then, in the early 20^th century, the country itself embraced a protectionist trading agenda. These experiences had long-term consequences for the structure and productivity of the national economy.

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.

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 UK pay and employment?

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.

Energy & climate change

How does fast fashion affect the environment?

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.

Data stories

Where next for UK inflation?

The inflation data released in late March 2025 show that UK price growth has slowed slightly. But this relief, largely driven by a surprise fall in clothing costs, is unlikely to last, with impending rises in energy bills and mounting world trade tensions putting further upward pressure on prices.

All Answers