Economic Growth
China’s Economy Surges with Q4 GDP Growth of 5.4%
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fiscal policy
Economic Growth
Saudi Arabia Bets Big on Mining with a $100 Billion Investment
Saudi Arabia has unveiled a $100 billion investment to supercharge its mining sector, targeting critical minerals like lithium, nickel, and rare earth elements. This massive expenditure isn’t just about extracting resources—it’s a bold economic strategy […]
Economic News
France Targets the Wealthy with New Tax Hikes to Tackle Deficit
In a bid to save €60 billion in 2025, the French government has unveiled a draft budget plan targeting wealthy individuals and billion-dollar corporations with temporary tax hikes. The measures aim to reduce France’s budget […]
Curious?
Global Wealth Tax: A Potential $2 Trillion Boost for Climate Action
Governments worldwide could raise over $2 trillion by adopting Spain’s wealth tax model, according to the Tax Justice Network. This additional revenue could play a crucial role in funding climate transition initiatives. The concept of […]
Aggregate Demand and Supply
The Budget in Brief: Cuts, Reliefs, and Reforms
In a decisive move to spur economic growth, UK Chancellor Jeremy Hunt has presented a budget focused on long-term prosperity and reducing the electoral deficit faced by the Conservative government. The centerpiece of Hunt’s announcement […]
Aggregate Demand and Supply
Thailand’s Strategic Tax Cut on Alcohol to Revitalise Tourism
In a notable effort to rejuvenate its tourism sector, Thailand has announced a reduction in alcohol tax rates. This policy, effective from Friday, is part of a broader strategy to appeal to international visitors and […]
Consumer and Business Behaviour
Major Tax Breaks in Saudi to Boost Business Hub Ambitions
Saudi Arabia has recently unveiled a compelling tax incentive program, providing a 30-year exemption from corporate income tax for foreign companies moving their regional headquarters to the Kingdom. This initiative is a part of Saudi […]
Aggregate Demand and Supply
Japan’s Slips into an Economic Downturn: Here’s the why and what is to be done!
Japan’s economy, the world’s third-largest, contracted at an annual pace of 2.1% in the third quarter of 2023. This contraction, marked by weakened consumption and investment, represents a significant downturn from previous quarters. Notably, private […]
Consumer and Business Behaviour
Billionaire Tax: The Quest for Fairness!
Billionaires around the world might need to keep a closer eye on their bank accounts. A recent report by the EU Tax Observatory suggests that some of the world’s wealthiest individuals are paying little to […]
Aggregate Demand and Supply
China’s Big Bet: $137 Billion Infrastructure Boost to Rev Up Economy!
China is making a bold move to bolster its economy by allocating an additional 1 trillion yuan ($137 billion) towards infrastructure projects. This strategic decision comes as China aims to counteract the economic pressures it […]
Economic Growth
South Africa’s Fiscal Policy Crisis: A Cautionary Tale for Future Economists
South Africa, a country known for its rich history and diverse culture, is currently facing a crisis. The country’s top business leaders are sounding the alarm, warning that South Africa could become a “failed state” […]
Aggregate Demand and Supply
Corporation Tax to rise to 25% for the most profitable firms
The rate of corporation tax is going up in the UK! That’s right, starting next month, companies with over £250,000 in profits will have to pay 25% in corporation tax instead of the current 19%. […]
Economic News
French government to earn over 10 million euros in tax windfall after the discovery of secret swimming pools
Thousands of French households are facing an unexpected tax bill after the use of an artificial intelligence tool found over 20,000 unreported swimming pools. The tool, which was only trialed in a handful of regions, […]
Consumer and Business Behaviour
Filipino drivers to receive fuel subsidies as oil prices rise
Filipino drivers to receive fuel subsidies as oil prices rise […]
Aggregate Demand and Supply
US Congress passes $900 billion Covid-19 relief bill – so where’s all that cash going?
After months of intense negotiations, the American government looks finally set to inject billions of dollars into the US economy. The so-called “Covid-19 relief bill” should do exactly what it says on the tin: providing […]
Aggregate Demand and Supply
Japan to lend $414 million to Myanmar for huge infrastructure project and corporate financing
A deal has been agreed between the governments of Japan and Myanmar to sign off on ¥42.78 billion (US$414 million) worth of low-interest loans. Over half of the money will be directed towards a huge […]
Curious?
Rishi to the rescue: UK chancellor announces the new job support scheme
The UK chancellor, Rishi Sunak, has just announced the government’s latest scheme to save people’s jobs from the ongoing Coronavirus crisis. With the job retention scheme set to end at the end of October, both employers and […]
Economic Growth
Cost-push inflation is driving up prices throughout the Indian Economy
Inflation in India, the fifth largest economy in the world, stood at 6.9% in July according to the latest measurement of the CPI (consumer price index). This means that inflation in India has been above […]
Consumer and Business Behaviour
US budget deficit hit a record high in June of $864 billion
Governments need to keep track of their spending just like we all do. If they spend more than they earn, just like our bank balance goes into the red, so does theirs! This is commonly […]
Aggregate Demand and Supply
£900,000 of taxpayer’s money to be spent on painting the PM’s plane
Government spending is a complicated business. In a mixed economy, the role of the government is undoubtedly vital in providing much needed public goods such as roads, schools, hospitals, and of course every economics teacher’s […]
Consumer and Business Behaviour
American airline employees are facing the tough decision of cutting their losses or gambling for hope of a brighter future
The aviation industry has been one of the hardest hit by Covid-19. With countries closing borders and people ordered to stay at home, the demand for air travel has plummeted. The result has been a […]
Aggregate Demand and Supply
An economy down under: Australia facing the prospect of a deep recession
Josh Frydenberg, the Australian Treasurer, announced on Wednesday that the economy is likely to have shrunk by as much as 9% from April to June. This further decline in size, following a 0.3% contraction in […]
Consumer and Business Behaviour
French government to provide 8 billion euros to help revive their car industry
The president of France, Emmanuel Macron, announced this week a fiscal stimulus of €8 billion to help the French car industry. His government are hoping that the cash injection will not only help domestic auto […]
Consumer and Business Behaviour
Prime Minister Modi announces a $60 billion relief plan to help small businesses in India
India, the second largest country in the world with a population of 1.35 billion people, has now been in lockdown for over 50 days. The impact of such a widespread stay-at-home order has had a […]
Consumer and Business Behaviour
VAT to be tripled in Saudi Arabia to 15%
Saudi Arabia, the second largest oil producing nation in the world, has for the last few years been trying desperately to diversify its economy and reduce their dependence on the export of oil. Despite being […]
Economic News
6.3 million people in the UK are being paid by the government – to stay at home!
In April, the UK government launched an unprecedented job retention scheme to combat the economic fallout of the coronavirus on employment. Under the scheme, the UK government will fund 80% of workers’ wages, up to £2,500 a month, […]
Curious?
UK government to borrow over £200 billion to fight Covid-19 – but who do they borrow from?
In the last three months, governments around the world have been spending huge sums of money on packages to reduce the economic devastation being caused by Covid-19. So far, the global response has amounted to […]
Balance of Payments
Singapore to inject another US$3.6 billion into the economy as coronavirus cases spike
The government of Singapore has announced an additional US$3.6 billion to support the economy as the city state sees coronavirus cases increase despite earlier signs that the virus seemed to have been contained. The additional […]
Economic News
The cost of the coronavirus so far: $7 trillion and counting
Since the outbreak of Covid-19 in January this year, governments and central banks around the world have been spending trillions of dollars in order to keep the global economy afloat. The scale of the economic […]
Aggregate Demand and Supply
US senate announces a $2 trillion fiscal stimulus
In response to the economic fallout from the spread of Covid-19 in the US, the Senate has passed a bill which will free up $2 trillion to be used for a coronavirus relief package. Since […]
Aggregate Demand and Supply
UK government to step in and pay people’s wages
In yet another unbelievable day of economic policy in action, the chancellor of the exchequer, Rishi Sunak, announced yesterday the latest measures to protect people’s income, keep businesses alive, and encourage spending in the economy. […]
Aggregate Demand and Supply
Interest rate in the UK has been cut to lowest in history – what a time to be studying economics!
For the second time in a week, the Bank of England has cut interest rates in an attempt to rescue the UK economy from the jaws of a coronavirus induced crash. In an unprecedented move, […]
Consumer and Business Behaviour
Here is ten thousand HK dollars… Help kickstart our economy!
In an unprecedented move to help boost the ailing Hong Kong economy, the financial secretary Paul Chan has announced a HK$10,000 cash handout for all permanent residents aged 18 or above. This creative fiscal policy […]
Aggregate Demand and Supply
At what cost should the UK balance its budget?
All eyes are on the UK’s new chancellor, Rishi Sunak, who will soon be announcing the government’s budget for the coming year. Since 2010, the UK government has been aggressively cutting public expenditure in […]
Consumer and Business Behaviour
Chinese economy could take a US$60 billion hit following the deadly coronavirus outbreak
The economic impact of the coronavirus is still a guessing game at the moment, but one thing is for sure: it is going to be big. The impact on the services sector alone has already […]
Aggregate Demand and Supply
Economic growth slowing down in the Philippines
At a modest 5.9%, Economic growth in the Philippines for 2019 was the slowest recorded growth in 8 years. Whilst this figure dwarfs the growth rates for developed economies, 5.9% is considered too little for […]