On a basic level net migration will increase gross domestic product, for two reasons. Bigger workforce Increase in demand in the economy. But what effect will immigration have on per capita income, tax revenues employment and other factors affecting living standards like housing costs? The Economic Costs and Benefits of Immigration – The Surprising Winners …
Earlier this summer the Bank of England warned that the UK was heading into the deepest recession in a generation. Yesterday the Bank of England warned the UK was in the longest recession in a generation – a double gloomy prognosis to go with their record-breaking rise in interest rates by 75 basis points from …
Since Q1 2009, UK house prices have risen from £149,709 to £270,452 (Q2 2022) – an 81% increase. yet, during that period, median average wages have grown by just over 5%. The two main reasons are limited supply and ultra-low interest rates. Yet, this summer marked a turning point, with higher inflation causing Central …
Since the great financial crash of 2007, the UK economy has struggled. Although the past 15 years have been challenging from a global perspective, compared to many international competitors, the UK has slipped behind. Economic growth before global financial crisis of 2007-09 was 2.7%, the new normal is now closer to just 1.5% and with …
Central Banks around the world are increasing interest rates because of concerns about inflation. However, the curious feature of this economic cycle is that Central Banks are raising rates, just as economies go into recession. Higher interest rates will, therefore, exacerbate the economic downturn and cause a deeper recession and higher unemployment. So why are …
Research shows that historical interest rates have been consistently falling, ever since the first interest rates could be measured in the medieval ages. Although there are cyclical fluctuations, there is a consistent long-term trend for real interest rates to fall at a steady rate. The interesting thing is that this phenomenon has been noticed in …
There is no doubt that as the economy emerged from Covid lockdowns in 2021, the world experienced a surge in inflation, not seen since the 1970s. There are many supply and demand factors, which have caused this unexpectedly high inflation. The first factor is that Covid lockdowns, especially in China and Asia, disrupted global supply …
The recent surge in UK government gilts is a warning that unfunded tax cuts in a time of high inflation can cause markets to sell off UK bonds and make it harder to finance future government borrowing. After 15 years of ultra-low interest rates and little concern about rising debt, it is a reminder that …