Category Archives: Economic policy

IMF boss says global economy risks return of Great Depression

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Kristalina Georgieva compares today with “roaring 1920s” and criticises UK wealth gap

The head of the International Monetary Fund has warned that the global economy risks a return of the Great Depression, driven by inequality and financial sector instability.

Speaking at the Peterson Institute of International Economics in Washington, Kristalina Georgieva said new IMF research, which compares the current economy to the “roaring 1920s” that culminated in the great market crash of 1929, revealed that a similar trend was already under way.

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UK channels aid budget as it seeks closer ties with Africa post-Brexit

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£395m trade boost is aimed at countering China’s spending on the continent

Britain has unveiled plans to channel part of the £14bn aid budget through the City as it seeks to exploit the global reach of the finance sector to boost investment in Africa.

Details of the £395m package were announced by the international development secretary, Alok Sharma, ahead of a high-level UK-Africa investment summit next Monday.

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UK growth will dip to 1% even if no-deal Brexit avoided, warns OECD

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Prospect of crashing out of EU leaves UK more exposed to global financial risks, thinktank says

The UK’s GDP growth rate will slip to 1% next year even if a no-deal Brexit is avoided, according to the Organisation for Economic Development and Cooperation.

The OECD said the economy would slow down from growth of 1.2% this year if parliament passes Boris Johnson’s Brexit deal before the 31 January deadline, before returning to 1.2% in 2021.

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World economy is sleepwalking into a new financial crisis, warns Mervyn King

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Past crashes spawned new thinking and reform but nothing has changed since 2008 banking meltdown, says former Bank of England boss

The world is sleepwalking towards a fresh economic and financial crisis that will have devastating consequences for the democratic market system, according to the former Bank of England governor Mervyn King.

Lord King, who was in charge at Threadneedle Street during the near-death of the global banking system and deep economic slump a decade ago, said the resistance to new thinking meant a repeat of the chaos of the 2008-09 period was looming.

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Northern Powerhouse seeks more control of HS2 rail scheme

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Business and city leaders warn of economic damage of cancellation and call for 2012 Olympics-style authority

A review of HS2 by northern business and city leaders has called for control of construction of the high-speed railway to be devolved to the north and Midlands – and warned that its possible cancellation would leave no viable alternatives for transforming their economies.

The Northern Powerhouse Independent Review (NPIR), established to inform or pre-empt the government’s own review of HS2, recommended a new body, HS2 North, be established to integrate HS2 with proposed Northern Powerhouse Rail links.

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African lives are measured in fighting UK visa rejections | Nesrine Malik

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The Home Office’s hostile handling of visiting African professionals doesn’t bode well for Global Britain

An African passport is the most egalitarian of documents, in that if you have one then class, employment status and professional invitations from the country you are visiting all count for nothing. From university professors to unskilled labourers, anyone holding a passport issued by a country in Africa will be treated the same by UK border officers. They will also show no compassion for or recognition of the need for people to be reunited with family or to see friends.

In fact it’s not too far-fetched to say an African passport is a no-travel document. Even countries within Africa are miserly with each other. I am a veteran visa applicant, and I can tell you there is no respite. A European visa is as prohibitively hard to secure as one to a neighbouring African country. My Sudanese passport meant that I had to become an Olympian visa-applier in order to visit, study and settle in the UK. You can’t slouch with a passport from a country on a terror watchlist.

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George Osborne’s ambitions over IMF top job prompt criticism

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Former UK chancellor’s austerity agenda will count against him, say opponents

George Osborne’s interest in running the International Monetary Fund has met immediate criticism because of the former chancellor’s austerity policies and Brexit-related question marks over the UK’s international standing.

Osborne, the editor of the Evening Standard, has signalled to friends that he views himself as a potential candidate to replace Christine Lagarde, the current head of the Washington-based fund, who was nominated to lead the European Central Bank this week.

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Angela Smith launches bid to commission report on no-deal Brexit risks

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Labour’s leader in House of Lords at head of cross-party effort to establish joint committee of MPs and peers

Labour’s leader in the House of Lords, Angela Smith, is spearheading a cross-party bid to force the government to set up a powerful new committee to report by September on the risks of a no-deal Brexit.

Both candidates in the race to be Britain’s next prime minister are saying they are prepared to take Britain out of the EU without a deal if they cannot secure concessions from Brussels.

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Mexican president leads ‘celebration’ rally after US tariffs dropped

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Andrés Manuel López Obrador tells crowd in Tijuana he is raising an ‘open hand’, not a closed fist, to Donald Trump

The Mexican president, Andrés Manuel López Obrador, travelled to the border city of Tijuana to rally the country in “defence of national dignity”, but to also reaffirm friendship with the US people – barely a day after the US cancelled the threat of tariffs.

López Obrador called the rally, which was convened prior to the tariffs being cancelled, a “celebration” of both countries brokering a deal.

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Mark Carney tells global banks they cannot ignore climate change dangers

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Financial sector warned it risks losses from extreme weather and its stakes in polluting firms

The global financial system faces an existential threat from climate change and must take urgent steps to reform, the governors of the Bank of England and France’s central bank have warned, writing in the Guardian.

In an article published in the Guardian on Wednesday aimed at the international financial community, Mark Carney, the Bank’s governor, and François Villeroy de Galhau, the governor of the Banque de France, said financial regulators, banks and insurers around the world had to “raise the bar” to avoid catastrophe.

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Hammond plays down Brexit delay increasing chance of second vote

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Time likely to be too tight for referendum before end of October, says chancellor

Philip Hammond has played down the possibility that the UK could use the delay to Brexit to hold a second referendum and stressed that he still expects Britain to leave the European Union.

Speaking in Washington, the chancellor said time would be too tight to hold a confirmatory vote before the new deadline of the end of October unless it was triggered over the coming weeks.

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Economy could be 9% weaker under no-deal Brexit, government says

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Latest no-deal notice forecasts Northern Ireland to be hit hard and food prices likely to rise

The government has issued a bleak warning over a no-deal Brexit, estimating the UK economy could be 9% weaker in the long run, businesses in Northern Ireland might go bust and food prices will increase.

In an official document only published after repeated demands by the former Conservative MP Anna Soubry, the government also revealed it was behind on contingency planning for a third of “critical projects” in relation to business and trade.

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Fightback against the billionaires: the radicals taking on the global elite

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When Rutger Bregman and Winnie Byanyima spoke out about taxes at Davos they went viral. They talk with Winners Take All author Anand Giridharadas about why change is coming

Rutger: Winnie, why did the comments you and I made about billionaires and taxes at Davos go viral? Why do things seem to be changing right now?

Winnie: Why did we go viral? I think we said things that people have wanted to hear, especially on a big stage where powerful politicians and companies are represented. And they are rarely said. People go there and speak in coded words and praise themselves and spin out the stats that suit them, but for once we spoke plainly about the challenges that people face.

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Philip Hammond urges business leaders to accept Brexit result

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Speaking in Davos, chancellor says changes such as end to free movement are on the way

Philip Hammond has told business leaders they need to accept the result of Britain’s EU referendum and warned that a failure to implement it would damage the country’s political stability.

The chancellor told increasingly restless business leaders that he was working for a deal that safeguarded the economy, and said he understood their frustration but companies had to accept that changes were coming – such as an end to the free movement of people and business models built on a supply of cheap labour.

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