UK Economics Update What if the emergency Budget raises VAT? There is clearly a strong chance that Tuesday’s emergency Budget contains a rise in VAT. While this might make the MPC’s job a bit trickier, we doubt that it would push the Committee into raising... 17th June 2010 · 1 min read
Japan Economics Update Fiscal plans fall well short The manifestos for next month’s Upper House elections published today show a worrying lack of urgency or ambition in their commitments to sort out Japan’s dire public finances. In particular, the... 17th June 2010 · 1 min read
UK Economics Focus Emergency Budget Preview The new Governments emergency Budget on June 22 will mark the beginning of the biggest fiscal squeeze seen since the end of the Second World War. This will act as a significant drag on the economy... 15th June 2010 · 1 min read
UK Economics Update OBR forecasts do not point to a soft Budget The lower path of public borrowing projected by the Office for Budget Responsibility might seem to relieve some of the pressure for an additional fiscal tightening in next week’s Budget. But we don’t... 14th June 2010 · 1 min read
UK Economics Update OBR forecasts do not point to a soft Budget The lower path of public borrowing projected by the Office for Budget Responsibility might seem to relieve some of the pressure for an additional fiscal tightening in next week’s Budget. But we don’t... 14th June 2010 · 1 min read
Europe Economics Weekly Recovery continues, but fiscal squeeze looms On the face of it, the latest news on the euro-zone economy has been reasonably encouraging, suggesting that the recovery has continued despite the fiscal crisis. National data point to another... 14th June 2010 · 1 min read
UK Economics Weekly OBR’s forecasts to underline need for a tough Budget This week’s pronouncements by the newly created Office for Budget Responsibility (OBR) could set a gloomy backdrop for the emergency Budget due in just over a week’s time. For a start, the OBR is... 14th June 2010 · 1 min read
Europe Economics Update Bold fiscal plans are still not enough While the recent flurry of austerity measures in Germany and elsewhere goes some way towards meeting deficit reduction targets, there is considerably more to be done. And with the cuts already... 10th June 2010 · 1 min read
Emerging Europe Economics Update Hungary still walking a fiscal tightrope The announcement of a renewed fiscal squeeze in Hungary should help to ease market fears of a ‘Greek style’ crisis in the country. But the policies unveiled earlier today sidestep the underlying need... 8th June 2010 · 1 min read
UK Economics Update UK faces a tougher task than Canada to cut deficit The Canadian experience of the mid-1990s has been taken by many as evidence that the UK’s large government deficit can be brought under control fairly easily and without undermining the broader... 8th June 2010 · 1 min read
Asia Economics Update Pakistan targets an ambitious fiscal tightening Pakistan’s annual budget, which was announced over the weekend, aims to narrow the budget deficit by one-two percentage points of GDP by mid-2011. While GDP is likely to accelerate and lift tax... 7th June 2010 · 1 min read
Europe Economics Update Spain faces an uphill battle to ease markets’ fears The latest ratings downgrade of Spanish Government debt has triggered a new wave of concern in the markets. While Spain’s problems are far less acute than those of Greece, the Government still faces a... 3rd June 2010 · 1 min read
Global Economics Update Big picture still dominated by fiscal challenges Despite the turmoil in financial markets, the near-term outlook for the world economy is brighter than a few months ago. Nonetheless, a seemingly impressive rebound in 2010 is likely to give way to... 26th May 2010 · 1 min read
Europe Economics Update Will fiscal union save the euro-zone? The recent rescue package along with rulings made by the European Commission might be steps towards euro-zone fiscal integration that could feasibly benefit the region’s economies in the long run. But... 26th May 2010 · 1 min read
UK Economics Update Spending cuts just the tip of the iceberg The planned efficiency savings detailed by the new Government today are just the tip of the iceberg. Much bigger cuts, alongside hefty tax increases, will be needed to bring the budget deficit down. 24th May 2010 · 1 min read
Asia Economics Update New Zealand’s Budget moving in the right direction Today’s Budget in New Zealand aims to boost savings and business spending, whilst pulling back consumption and investment in the property market. The target is to eliminate the budget deficit by 2015... 20th May 2010 · 1 min read
