Economics

Poland expects its unemployment rate to hit the lowest level in the country’s post-communist history as youth employment picks up. The unofficial estimate by the Ministry of Family, Labour and Social Policy puts it at 8.6 per cent, lower that at any point since Poland shed the legacy of over-employment under communist rule and became a market economy in 1990.

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John Burn-Murdoch

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The chain of events that led to Brexit will be examined in great detail — and much anguish on the Remain side — for years to come. Rapid changes in the UK’s political climate undoubtedly played a part, and global events including the Great Recession and recent European migrant crisis have left their mark.

But for now we can focus on what we know in the immediate aftermath of the vote: the distinguishing characteristics of the areas of Britain that voted for either side. Read more

Valentina Romei

This week the European Commission let Italy off the hook, granting the country extra flexibility – to the tune of 14 billion euros – in its debt reduction targets for 2016.

The extra “flexibility” includes allowances for investments (0.25 per cent of GDP), for the refugees crisis (0.04 per cent of GDP) and for extra security measures (0.06 per cent of GDP). In return the Commission wants a ‘clear and credible commitment’ from Italy that the country will respect its budget targets in 2017. Read more

Valentina Romei

If the UK were to leave the European Union, it will mean that it will also be outside the Capital Markets Union (CMU), when completed. The CMU is a set of measures designed to clear obstacles between companies and potential investors. The idea – in the words of the European Commission that created it – is “to mobilise capital and channel it to all companies, including SMEs, and infrastructure projects that need it to expand and create jobs”.

The EU economy is slightly bigger than that of the US, but its capital market is very different. Its equity market is about half the size of that of the US and its securitisation market is less than a quarter of the US. Read more

Valentina Romei

The value of cross border merger and acquisition deals in Italy reached a new high in 2015 at over $50bn. Italian companies were the most targeted by foreign acquisitions in the European Union after the UK, along with France. Read more

Valentina Romei

Wealth disparities within EU countries were narrowing prior to the 2008 crisis, but since then the poorer regions have stopped catching up with the wealthiest ones.

“European countries converge at national level, but at the cost of a rising divergence within the countries” explain Joaquim Oliveira Head of the OECD Regional Development Policy Division in an interview with the FT. Read more

Valentina Romei

About two in three women aged 25 to 64 years old are in employment in the European Union, the highest proportion since the data series began 23 years ago. However, the EU average conceals considerable variation between regions.

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John McDonnell, the shadow chancellor, gave a speech last week lamenting that the liberalising policies adopted by the Thatcher government in the 1980s never led to widespread share ownership:

The Tories promised a “shareholding democracy” would arrive through privatisation. A “trickle-down effect” would mean that, even if the rich got very rich indeed, everyone else would be a little better off.

But the promises of freedom and “popular capitalism” turned out to be illusory.

Today, share ownership by individuals is at the close to the lowest level ever recorded. Just 12 per cent of shares are owned by individuals in the UK, down from 28 per cent in 1982, and pension funds own only 3 per cent.

It would be fair to call these figures misleading and point out that people can own shares through insurance companies or they might have a stake in other kinds of funds as well as their pension. So if between them individuals and pension funds own just 15 per cent of shares who owns the rest? Read more

Valentina Romei

Employment is growing in the Eurozone. There were nearly 3 million more people in employment in the third quarter of 2015 than there were two years before. Read more

Eswar Prasad and Karim Foda

The world economy is beset by a dangerous combination of divergent growth patterns, deficient demand, and deflationary risks. The latest update of the Brookings-Financial Times TIGER (Tracking Indexes for the Global Economic Recovery) reveals sharp divergences in growth prospects between the advanced economies and emerging markets, and within these groups as well.  Read more

Valentina Romei

Keith Fray and Valentina Romei

During the six years from 2007 to 2013 the annual output of the Greek economy fell by more than 26 per cent. On the FT’s statistics desk we wanted to know how that fall ranked compared with sustained periods of economic retrenchment and dislocation in other countries. Read more

Guest post by Paul Hodges

Demographic change is creating major headwinds for the US economy, as confirmed by its disappointing first quarter GDP growth of 0.2 per cent. Consumption accounts for around 70 per cent of US GDP, and new data on household spending from the US Bureau of Labor Statistics (BLS) demonstrate how the ageing of the US population is creating major structural change in the economy. Read more

Due to a mix of scarce resources, methodological difficulties and poor incentives, much of the data collected on the world’s poor is either inaccurate or missing. That’s one of the findings of a study being released today by the Overseas Development Institute (ODI) at the Cartagena Data Festival in Colombia.

While the trend of falling poverty is genuine, the ODI think that numbers in poverty may be being understated by up to 350 million, more than the entire population of the US. Read more

Sarah O'Connor

David Cameron is taking a leaf from Shinzo Abe’s book. “It’s time Britain had a pay rise,” the UK prime minister plans to tell business leaders on Tuesday (unlike the Japanese prime minister, he will deliver his message in a speech rather than over a few rounds of golf.) It seems like a political no-brainer with an election in May and a workforce that has suffered six years of real terms pay cuts. But is it really that simple? And what can Mr Cameron do about it anyway? Here are six charts that explain what is really going on.

1. It’s true that UK workers have suffered a brutal real-terms pay cut since the crisis.

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The world is awash with even more debt than before the financial crisis. Use the FT interactive tool to compare countries’ debt levels Read more

Earlier this week the charity Oxfam released a paper ahead of the world economic forum in Davos that claimed that the wealthiest 1 per cent of the world’s population were on track to own half the world’s wealth by 2016.

Others have pointed out problems with this data. To calculate an individual’s wealth the Credit Suisse data takes debts away from assets to give a figure for net wealth. Anyone with debts greater than their assets has negative wealth. Read more

There are signs that the 40 per cent fall in oil prices might not deliver the expected stimulus. Chris Giles assesses the outlook for the global economy while FT reporters look at the prospects for key exporters and importers.

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The UK’s information technology sector could be about 40 per cent bigger than previously though, with at least 70,000 more ICT companies in operation.

That’s according to the National Institute of Economic and Social Research who have come up with a pretty novel way of measuring the size of Britain’s tech sector using one of the industry’s most hyped concepts ‘big data’.

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In the aftermath of the financial crisis the world saw an increase in the number of street protests. Many inspired by perceived connections between the political elite and business interests; Occupy Wall Street and Los Indignados in the west to the Arab Spring and the protests against Victor Yanukovich in Ukraine. A new working paper from the National Bureau of Economic Research presents evidence on their power.

Daron Acemoglu, Tarek Hassan and Ahmed Tahoun examines the correlation between street protests in Egypt and the stock market returns for firms connected to former president Hosni Mubarak’s National Democratic Party (NDP), the Muslim Brotherhood and the Egyptian military. Read more

Even before the dispute with Russia began battering their economy, hundreds of thousands of Ukrainians fled their country looking for a better life elsewhere. Ukrainians are now the largest group of migrants from non-European Union countries applying for residence in the bloc.

Eurostat said on Wednesday that the number of Ukrainians issued with EU residence permits rose by 48 per cent in 2013. Most Ukrainians moved to Poland looking for work. In total 236,691 permits were granted to Ukrainians, which means that the country has overtaken the US as the most common source country for migrants to the EU — India has also overtaken the US to take second place. Read more