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The BCC predicts unemployment will increase over the next 18 months. Photograph: Matt Cardy/GettyThe UK economy will grow faster than first thought this year, the British Chambers of Commerce predicts today, but the threat of double-dip recession remains as government cuts bite and unemployment rises.Following news last week that the UK economy enjoyed its fastest growth in almost a decade this spring, the BCC has raised its 2010 forecast to 1.7% growth from the 1.3% expansion ... |
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In the four years since I took the job of business editor at the Observer, the world has changed beyond recognition. In 2006 it would have been almost unimaginable that high-street names such as Halifax Bank of Scotland, Bradford & Bingley and Alliance & Leicester would disappear and that Royal Bank of Scotland, then in its pomp, would have to be rescued by taxpayers.Over the years, these columns have been informed by five core beliefs. The first is that although ... |
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Ha-Joon Chang says the washing machine revolutionised society in more profound ways that the internet. Photograph: Karen RobinsonHa-Joon Chang, born in South Korea in 1963, is an economist based at Cambridge University specialising in development. Known for his heterodox views, he is the author of several books, including Kicking Away the Ladder (2002) and Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism (2008). In his new book, 23 Things They Don't ... |
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A worker on a construction site in Suining, in China's Sichuan province. Western capitalism is likely to decline in the face of competition from China, India and Russia. Photograph: AFP/Getty ImagesThe world is awash with books that claim to explain the global financial meltdown. Not many are written by economists. Ignorant of history, including that of economics itself, most economists not only failed to forecast the crash but, mesmerised by the spurious harmonies of their ma ... |
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Crop harvesting in Germany. A shortage of arable farmland is leading to intercontinental 'land grabs' creating greater pressure on the environment and provoking political crises. Photograph: Sean Gallup/Getty ImagesA few diehards in the City still think sustainability is just for sandal-wearers. But how we deal with the major ecological and social challenges facing the world will have enormous implications for the global economy and for the prospects of the UK's leading compan ... |
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Charles Bean, the Bank of England deputy governor, says interest rate controls alone cannot prevent future economic crises. Photograph: NewscastA leading Bank of England policymaker has warned that central bankers will be unable to prevent the next financial crisis if they are forced to rely on raising interest rates alone.In a speech that overturned the orthodoxy that has determined policy for the last 20 years, Bank of England deputy governor Charles Bean said interest-rate ... |
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Business secretary Vince Cable the 20% rise in net immigration is caused by fewer Briton's leaving the UK to live overseas. Photograph: David Cheskin/PATensions over immigration within the Conservative-Liberal Democrat coalition resurfaced today, when Vincent Cable urged his colleagues not to introduce new border controls that would harm economic growth.The business secretary spoke out after new figures showed an unexpected 20% rise in net immigration to Britain: 196,000 peopl ... |
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Samuel Tombs, UK Economist at Capital EconomicsWhile the second estimate of UK GDP confirms that the economy expanded at a pretty robust pace in the second quarter, the figures cast doubt on the sustainability of the recovery. Quarterly GDP growth was nudged up from the initial estimate of 1.1% to 1.2%, largely as a result of faster growth in the construction sector than originally assumed. However, the expenditure breakdown of GDP shows that the recovery is built on very ... |
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High street spending has helped propel UK economic growth. Photograph: Frank BaronThe British economy grew at the fastest pace in more than nine years in the second quarter, higher than initially estimated, due to a pick-up in the construction industry and strong household spending.The figures show that the recovery gathered steam in the first half but economists are concerned that it could slow again due to looming drastic government spending cuts.The Office for National Sta ... |
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