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

Germany’s reunification: what lessons for policy-makers today?

Germany’s experience of reunification suggests that economic reintegration can take generations, not years – so leaders should avoid making unrealistic promises. Success requires not just material convergence, but also attention to social cohesion, institutional legitimacy and cultural recognition.

Audio recordings

Nations, regions & cities

How has deindustrialisation affected living standards in the UK?

Britain’s industrial decline has reshaped its economy and altered people’s lives. From job losses to worsening health, the impact of deindustrialisation runs deep, with scars that stretch across generations and regions.

DATA HUB

Compliance with NATO defence guidelines

Which NATO members are meeting defence targets?

NATO’s 2% GDP & 20% equipment spending guidelines set the standard – Canada and Belgium are the only members failing to hit either target.

Click on the chart to read Ron Smith on UK strategic defence reviews.

Public spending, taxes & debt

UK national security: what have we learned from strategic defence reviews?

The history of British defence policy has been one of constant imbalance between resources, capability and commitments, interspersed with reviews that fail to solve the fundamental problems. These appraisals are typically done at times of economic crisis when public expenditure must be controlled.

MAGAZINE

Read the latest edition of our magazine here

Mounting national security threats have led a number of European countries to consider reinstating mandatory military service. Proponents argue that it would bolster national defence and boost citizenship among young people. But evidence on either effect is scarce or points to the opposite outcome.

News

China crisis

Headlines about China are dominated by the vagaries of trade war with the United States. Beyond those battles, there are big issues around consumer spending, the real estate market, the Belt and Road Initiative, and the role of technology in the country’s growth prospects and national security.

Nations, regions & cities

How did semiconductors become so central to Taiwan’s economic progress?

Taiwan is a highly developed economy that has experienced periods of rapid growth. Policies that championed industries such as semiconductor manufacturing have contributed enormously to the island’s economic progress. Relations with China remain a big economic and geopolitical concern.

Science, technology & innovation

What’s happening in China’s semiconductor industry?

China’s semiconductor industry faces a tension between self-sufficiency and global integration, engaging in open innovation where possible, but pivoting to security-driven self-reliance when necessary. Progress has been made, but big challenges remain, particularly with growing geopolitical risks.

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.

Nations, regions & cities

The Belt and Road Initiative: what impact on China and the global economy?

The Belt and Road Initiative lies at the heart of China’s outward economic engagement, providing opportunities for Chinese firms abroad and boosting infrastructure and development in recipient countries. Future challenges include governance, debt sustainability, and social and environmental effects.

Nations, regions & cities

How is China’s economy faring?

China’s economy has suffered from slow consumer spending and a slump in the real estate market. The unpredictable trade war with the United States risks further economic problems, but the current pause in tariff increases plus persistent stimulus from Beijing are keeping the worst outcomes at bay.

Trade & supply chains

How might the UK’s relations with China evolve?

The new UK government is pursuing an approach towards China that promotes cooperation but challenge where needed. While increased trade with the world’s second biggest economy may bring benefits, economic opportunities with the European Union and the United States are likely to be greater.

Data stories

Why has UK inflation risen?

UK inflation has risen sharply, with higher household utility bills driving the largest increase since October 2022. This month’s data release is also the first since higher minimum wages and national insurance contributions came into effect, putting pressure on employers’ labour costs.

Schools, universities & training

The Cardiff crisis of the 1980s: what lessons for UK universities today?

A dire financial position at University College, Cardiff in the 1980s required an emergency response from the highest levels of UK government. Now, four decades on, Cardiff University and many other higher education institutions face a similar crisis – and may also require some kind of rescue.

Jobs, work, pay & benefits

Job opportunities for refugees: how can host countries help?

People who are refugees typically have worse employment prospects than the rest of the population, including other migrant groups. Targeted policies can help: speeding up application decisions, supporting access to work, improving job matching and providing language and mental health support.

All Answers