In March 2022, the EU, US and other western countries introduced a range of sanctions on the Russian economy. These sanctions have hurt the Russian economy, but they are also causing unprecedented strain on the West and Europe in particular. The big economic threat to Europe involves: Higher inflation from rising energy prices Threat of …
What are the implications of an ageing population? An older population presents many challenges to labour markets, government tax, government spending and the wider economy. The Population Timebomb – How An Ageing Population Will Change UsWatch this video on YouTube One of the great achievements of the Twentieth Century is a dramatic rise in life …
Bottlenecks refer to the situation where firms are unable to meet demand because of delays, shortages and lack of spare capacity. Bottlenecks can occur from a spike in demand or disruptions to supply. They can lead to higher prices, inflation, shortages of goods and even lower economic growth. For many years, we have grown accustomed …
Higher wheat prices will have a significant impact on raising food prices and reducing living standards; it is feared it could cause widespread poverty and social unrest. The impact of higher wheat prices will be felt disproportionately by low-income consumers and major wheat importing countries, such as Egypt and Nigeria. This is because consumers on …
Summary Natural gas is a key raw material for heating and electricity generation, therefore higher prices will significantly increase the cost of living, increase inflation and could slow down economic growth. In the long term, higher gas prices will encourage consumers to find alternatives and firms to increase supply (e.g. fracking for natural gas), but …