Short Run Costs of Production

Short Run Costs of Production Presentation

The growth of the German Economy

Growth of the German Economy

China becomes world's second-biggest economy

China has overtaken Japan to become the world's second-biggest economy.

At the end of 2010, Japan's economy was worth $5.474 trillion while China edged towards $5.8 trillion during the same period.

Analysts believe that based on current growth rates, China will replace the US as the world's biggest economy in about a decade. During 2010, Japan was hit by falling exports and consumer demand while China enjoyed a manufacturing boom.

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Easyjet to trial "revolutionary" paint to cut costs

Easyjet are to experiment with a special type of paint which to date has only been used on US military aircraft. The paint is said to reduce drag when planes are flying and thus cut down on fuel consumption and therefore costs.

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New measures to help exports announced

With new figures showing a widening gap in the UK's trade deficit in goods and services, the Business Secretary Vince Cable has announced new measures to encourage smaller companies to export more.

Mr Cable said the UK had "consumed too much and exported too little" and the four new schemes would be created to help firms get access to credit and insure against risk.

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German exports rose 18.5% in 2010

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Business news....

Due to changes in income tax, 750,000 people will now start paying the higher rate 40% tax rate in April 2011 according to the Institute for Fiscal Studies

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Ed Balls has questioned whether the Governor of the Bank of England, Mervyn King, truly believes that the UK economy is on the right track.

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It was worse than predicted......

The UK economy suffered a shock 0.5% contraction in the final quarter of 2010. The Office of National Statistics (ONS) reported that although the bad weather had had an effect, growth would still have been flat if its effect had been excluded.

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Latest economic news....

Economists have warned that the rate of economic growth in the UK is likely to have slowed in the last 3 months.

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And a further study suggests that the recovery is not evenly spread across the UK - while some cities like Hull and Doncaster are doing well, Sunderland and Liverpool are struggling to recover.

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Unemployment nears 2.5 million....

One in five 16-24 year olds is now out of work.....951,000 without jobs! The highest figure since records began in 1992. Unemployment overall rose to nearly 2.5 million at the end of November.

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Inflation rises as feared....and other stories.

The feared rise in inflation became a reality when the Consumer Price Index (CPI) increased from 3.3% to 3.7% in December. The Bank of England are coming under increasing pressure to raise interest rates to try and cut back on spending and reduce demand. The increase is blamed on rising costs of air transport, fuel, food and utility bills, and the recent VAT increase from 17.5% to 20% is likely to cause further rises.

1. Click here for full story
2. Who is most affected by inflation?
3. Stephanie Flanders - Inflation: Risks on both sides

Other stories

OPEC, the oil producing group, has said it is unlikely to increase output of oil despite the price of crude oil nearing $100 a barrel. A spokesman claims that supply to the market is sufficient and any output to reduce the price now looks unlikely.

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What to do about inflation?

The most recent rate of inflation will be announced on Tuesday with most analysts expecting a significant increase in the wake of rising petrol, energy and food prices. The article below looks at the impact of increasing inflation and possible solutions open to the Government.

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UK interest rates remain at 0.5%

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Good video with Declan Curry on why Interest Rates are important - check it out!

What is the Budget?

Video from HM Treasury outlining what the Budget is.

The Budget

Food prices in Australia to rise because of floods

Food prices could rise by as much as 30% in Australia due to the floods in Queensland having a knock on effect to inflation.

Food shortages on goods like wheat, sugar, fruit and vegetables will push prices up, which could have a knock on effect globally.

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Economic stories in recent days

Research has suggested that Britain needs to make inroads into emerging markets or risk "playing in the slow lane of history" as the world financial crisis shifts economic power to developing countries like China, India, Brazil, Russia etc. - with China expected to overtake the US as the world's biggest economy by 2032.

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David Cameron refuses to commit to a "fuel price stabiliser" after recent VAT and duty rises push petrol prices to a record high.

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The terrible floods which have hit the Australian area of Queensland are likely to affect coal mines for months, which could push up the cost of electricity and steel.

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How Australian floods hit Europe

Interesting news articles

A range of really interesting economics stories have made the news over the last week or so. Here are just a couple which are well worth a read:

1. Rising price of sugar, cereal and oil prices drives global food prices to a record high in December - click here
2. The floods in Queensland, Australia, are likely to have an effect on the global steel industry. Three quarters of the areas coal fields are unable to operate and they usually export half the coal for use in making the metal. The price of coking coal from $225 to $253 a tonne in the last 3 weeks - click here

The VAT rise kicks in....

Today marks the day when the rate of VAT increases from 17.5% to 20%, leading to higher prices in a lot of goods and services we buy. Some goods remain exempt such as food and childrens clothes. The Coalition government argue that it will raise £12 billion which will help reduce the budget deficit whereas opponents argue that it is a regressive tax increase which punishes the poor and risks destabilising the weak recovery.

Here are some interesting articles from the BBC website which are well worth a look:

• VAT rises from 17.5% to 20%
• Is the VAT increase regressive?
• Who will pay for the rise in VAT?