Economist Corner

According to a recent forecast by the Organisation for Economic Co-operation and Development (OECD), the United Kingdom is set to experience a more rapid increase in prices compared to any other advanced economy in the current year. In this article, we'll delve into some of the key economic terms used in the extract to help you better understand the situation. 1. Inflation : Inflation is the rate at which the general level of prices for goods and services rises, leading to a decrease in purchasing power. In the context of the article, the OECD predicts that UK inflation will average 7.2% in 2023, indicating a substantial increase in the cost of living. 2. G7 Group : The G7, or Group of Seven, is an intergovernmental organization consisting of seven major advanced economies, including the UK, US, Germany, France, Japan, Canada, and Italy. In this context, the UK's inflation rate is expected to be the highest among these nations. 3. Interest Rates : Interest rates refer to the co...

This week has been a rollercoaster ride for prospective homebuyers, with significant developments in the housing market and the economy. On Tuesday, the Nationwide building society released a report stating that house prices had experienced the most substantial annual fall in 14 years. However, on Thursday, the Bank of England made another interest rate hike, adding complexity to the situation. While falling house prices might seem like good news for first-time buyers, the reality is not as straightforward. The housing market had seen a surge due to the Covid pandemic, fueled by the stamp duty holiday and the desire for more space as people shifted to remote work. As a result, the average house price reached an all-time high of £260,828 in July, a remarkable £45,000 increase from February 2020. Although the year-on-year house price drop of 3.8% in July appears significant, experts remain cautious about declaring a housing market crash. The number of approved mortgages and total borrowi...

The Business Secretary of the UK, Kemi Badenoch, has emphasised the need for the UK to actively use the newly signed trade deal with 11 Asia and Pacific nations in order to fully benefit from it. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) covers a trade area with approximately 500 million people. While the agreement is expected to bring only marginal gains to the UK economy, Badenoch believes that the key lies in how businesses "utilise the agreement." The CPTPP and Its Benefits Established in 2018, the CPTPP includes countries such as Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. Membership in the CPTPP reduces trade restrictions among member nations and lowers tariffs on goods. By joining the group, the UK hopes to boost its exports by reducing tariffs on products such as dairy and meat, cars, gin, and whisky. With the 11 member countries accounting for approximately 13% of global...

PM Rishi Sunak said the offer to workers was final and there would be "no more talks on pay". The government has announced pay rise offers for more than one million public sector workers, including teachers, police officers, and doctors. According to the proposals, police and prison officers in England and Wales would receive a 7% pay rise, while teachers and junior doctors in England would be offered 6.5% and 6% respectively. The deal has been welcomed by four education unions, who have stated that it would allow them to resolve their dispute. They have advised their members to accept the offer. However, the response from other unions has varied. The pay offer for junior doctors has been met with criticism. Unions argue that the 6% increase is another real-terms pay cut and fails to address years of below-inflation pay. They also expressed dissatisfaction with the government's lack of negotiation, as was the case with doctors in Scotland. The unions are concerned that th...

The housing market in the United Kingdom has recently witnessed a significant decline in house prices, with the fastest rate of decrease in over a decade. According to the Halifax, one of the country's leading lenders, house prices fell by 2.6% annually, resulting in an average decrease of £7,500. This drop marks the most substantial decline since 2011. Concurrently, mortgage rates have been on the rise, creating a challenging environment for prospective buyers. In this article, we will delve into the factors contributing to the decline in house prices, the implications for buyers and homeowners, and expert opinions on the future of the housing market. Falling House Prices and Market Cooling: The Halifax reported a third consecutive monthly decline in house prices, with a 0.1% dip in June. This trend indicates a cooling of the market, as potential buyers exercise caution amidst price decreases. The average cost of a property in the UK now stands at £285,932. The lender emphasises t...

On its first day of launch, Meta's newly introduced Threads app garnered a staggering thirty million users, according to Mark Zuckerberg, the company's chief. Positioned as a "friendly" rival to Twitter, which was acquired by Elon Musk in October, Threads has the potential to attract discontented Twitter users who are unhappy with recent changes on the platform. Threads offers users the ability to post messages of up to 500 characters and incorporates many features similar to Twitter. Zuckerberg emphasised the importance of maintaining a "friendly" platform, which he believes will be the key to its success. However, Musk responded by stating that he preferred being attacked by strangers on Twitter rather than indulging in the "false happiness" of Instagram, which is known for its aesthetic focus. When asked whether Threads would surpass Twitter in popularity, Zuckerberg expressed confidence in the app's potential, stating that while it may take...