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11 September 2017

UK makes good progress on fuller working lives – but still scope to improve further

By John Hawksworth New data released by the DWP on 7th September showed that the UK has made good progress on extending working lives, particularly for women. Twenty years ago, the average age at which women exited the workforce was around 60 – now it is 63. The gradual rise...

03 August 2017

Why has the Phillips Curve gone flat?

By John Hawksworth and Jamie Durham Traditional economic theory would suggest that low unemployment will be associated with relatively high wage inflation - and vice versa - as described in the ‘Phillips Curve’ (named after the economist who first identified this relationship in the 1960s). However, the unemployment rate in...

31 July 2017

What can machine learning add to economics?

By Hugh Dance and John Hawksworth Machine learning and artificial intelligence (AI) are some of the hottest topics around today. On the one hand, AI promises great benefits for productivity and the economy, on the other hand it could also displace some existing jobs at the same time as it...

24 July 2017

House prices remain below pre-recession levels across a quarter of the UK

By Richard Snook The general perception of a UK wide affordability crisis masks huge differences in house price performance between regions. In a recent analysis of sub-regional data, we find that in a quarter of local authorities across the UK, house prices remain below the pre-recession peak achieved ten years...

18 July 2017

Building 250,000 homes a year may only knock £5,000 off the average house price

By Richard Snook It is no secret that the UK’s housing market is becoming increasingly unaffordable. The chronic undersupply of housing over the past few decades, coupled with increasing demand, has seen house price growth far exceed the rate of earnings growth. This has been felt the hardest in London,...

20 June 2017

PwC’s new Golden Age Index – the potential $2 trillion prize from longer working lives

By Hannah Audino and George Mason By 2050, the number of people aged 55 and over in OECD countries will grow to over 500 million. It is great news that we are living longer, but this demographic shift is already beginning to put a significant strain on our public services,...

30 May 2017

Can Vietnam be Asia’s new rising star?

By John Hawksworth Vietnam has been one of the strongest growing economies in the world since the Doi Moi reforms of the late 1980s. Only China has achieved consistently stronger growth in GDP per capita according to World Bank data for 1991-2014. Vietnam’s success has reflected a combination of visionary...

08 May 2017

Can Macron turn around the French economy?

By Andrew Sentance, Senior Economic Adviser, PwC Now that Emmanuel Macron has been elected as the next President of France, attention will turn to the policies which he will seek to implement over his five year term of office. His biggest challenge will be to turn around the performance of...

24 April 2017

Economic slowdown is underway as consumers rein in spending

By Andrew Sentance, Senior Economic Adviser, PwC Consumers are reining in their spending after a post-referendum shopping spree. That is the message from last week’s retail figures which showed a fall of 1.4% in sales volumes between the final quarter of last year and the first three months of 2017....

27 March 2017

Inflation is back – and action to contain it is now needed

By Andrew Sentance, Senior Economic Adviser, PwC The rate of inflation jumped sharply last month and is now back above the Bank of England’s 2 percent target. We should not be surprised. Inflation is rising in major economies around the world. Higher energy and food prices are part of the...