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

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.

Audio recordings

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.

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

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.

MAGAZINE

Read the latest edition of our magazine here

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.

Nations, regions & cities

What’s happening in Bangladesh’s garment industry?

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.

Business, big & small

Fast fashion: what are the true costs?

The cost of living crisis has led to an explosion in the fast fashion industry. Buying cheap, low-quality clothes allows people to update their wardrobes regularly at a modest cost. But this comes at the expense of both the environment and the wellbeing of garment workers in developing countries.

Business, big & small

How did fashion grow into a global business?

Fashion is a big part of the modern global economy. The industry reaches almost all corners of society and generates massive profits. But its evolution has been marked by contrasting stages. Today, fashion is highly democratised as well as being deeply unsustainable. It has not always been this way.

Science, technology & innovation

The personalisation economy: how is AI affecting businesses and markets?

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.

Attitudes, media & governance

How has national wellbeing evolved over time?

Survey data on national wellbeing only go back a few decades, but text analysis makes it possible to observe changes over longer periods of time. The results reveal the big influences on peaks and troughs in human happiness: income, health, aspirations and avoidance of major conflicts.

Banks & financial markets

Can reforms of financial regulation encourage economic growth?

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.

Health, physical & mental

Work and wellbeing during Covid-19: how were European countries affected?

Comparing data from France, Germany, Italy and the UK shows that social inequalities typically increased during the pandemic. Young people and those with less education were most affected by job losses: policy intervention could get more of them back into work.

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.

All Answers