Breaking: latest IMF World Economic Outlook is out.
Having flicked through, strikes me this is the most positive outlook since the onset of the pandemic (with some important provisos).
- UK, US and most advanced economies get a big vaccine-related upgrade this year & next
Here are the latest IMF GDP forecasts for G7 members. As you can see, an awful 2020 followed by pretty strong growth in 2022. UK actually strongest in G7 in 2022 (and given the OBR thinks 2022 GDP could be over 7% it’s poss the IMF is undercooking it slightly)
But look at the LEVEL of GDP growth and it’s a somewhat different story. The UK is the second last in the G7 to get back to its pre-crisis peak (Italy the slowest).
One striking line from the IMF is that the global recession could have been THREE TIMES as deep had governments not intervened with rescue measures.
Given 2020 was already the worst year on record, that’s quite something. White bar here illustrates that “three times worse”
Here’s the full IMF World Economic Outlook. If you’re interested in the state of the global economy, the recovery and the extent to which it’s being balanced between advanced and developing economies (not very balanced), it’s well worth a read imf.org/-/media/Files/…
Big deal: the IMF now reckon that advanced economies will almost completely avoid permanent COVID-related economic scarring.
Eg by 2024 their GDP LEVEL will be close to what was forecast pre-COVID.
US GDP will be even HIGHER.
For poorer countries… v different story
The IMF has been wondering aloud about whether countries should be introducing more taxes on the wealthy for some time. In today’s Fiscal Monitor they’ve gone further than ever before, recommending a “temporary COVID-19 recovery contribution” on incomes or assets of the wealthy.
The more I think abt it, the bigger a deal this is.
Conventional wisdom is China did best - economically at least - out of COVID, bouncing back first/fastest.
But IMF’s forecasts suggests it will face MORE scarring than advanced economies.
And that the US is the biggest winner
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80 years ago today, newspapers in Europe carried news of the unexpected death of a very important man, in a hotel miles from the nearest city.
A man who, said some, was helping the Allies win the war.
But there was a twist to the tale. The man in question wasn't actually dead
That man was John Maynard Keynes. The 61 year old economist was at the Mount Washington Hotel in New Hampshire for what became known as the Bretton Woods conference. And the day earlier he had indeed collapsed, following a heart attack. It was a moment of high drama.
The conference had already overrun.
It was supposed to be done in two weeks and there was talk that the delegates would soon be kicked out of the hotel. This was, to put it lightly, a problem.
After all, in the absence of an agreement there was a chance of yet another world war
It says something about how confusing Labour's green investment policies are that seemingly even the Treasury has misunderstood them.
Contrary to what the picture in this press release👇 suggests, the National Wealth Fund has nothing to do with wind power or indeed green energy
Instead it's very specifically designed to focus on all the low or zero carbon technologies that AREN'T really to do with generating power.
- Green steel
- Hydrogen
- Clusters
- Gigafactories
Here's the sectors the institution will focus on 👇
Simple way to think abt this:
Pretty much ALL heavy industry today emits carbon, directly or indirectly. The techniques we use to make stuff mostly date back to the industrial revolution. Getting to net zero involves redoing the industrial revolution! edconway.substack.com/p/yet-another-…
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How did Keir Starmer manage to win a landslide majority even though fewer people voted for him than for Jeremy Corbyn in either of his election bids?
A quick thread looking beneath the numbers.
Let’s start with swing…
Election nerds like to focus on two-party swing - essentially showing how voters shifted between the main parties.
And on this metric, Labour enjoyed a MASSIVE swing. 11%. Slightly more than Blair in 1997.
But there’s more to this chart than meets the eye…
Let’s take the same data, two-party swing, & break it down. Red bits of bars show change in Labour vote, blue bits show Tory change.
Now look again at that 2024 bar (on the far right).
The vast, vast majority of swing to Labour is in fact swing AWAY from the Conservatives.
🧵THE STRANGE CASE OF THE YAKOV GAKKEL🧵
A thread about the energy story no-one wants to talk about.
About how UK companies are helping facilitate Russia, as it earns money to finance its war.
And about how the cost of living crisis didn't end quite how you prob thought it did…
But before all of that it's a story of a ship. A v unusual ship.
The Yakov Gakkel. A vessel that routinely passes these shores. As I type this it's somewhere north of Norway. But I first saw it in the English Channel.
And at first glance you might not think it all that special..
But beneath that enormous blue hull is some incredibly advanced technology. Because the Yakov Gakkel is a cutting edge liquefied natural gas tanker, capable of holding vast amounts of natural gas at temperatures of approximately −163 °C.
These things are pretty incredible!
🧵You know the idea, posited by @theIFS, that the main parties are engaged in a "conspiracy of silence" this election.
Their original point was about spending plans.
But I think you cld go much further.
I can think of at least 5 other areas where there's a conspiracy of silence
1⃣Taxes ARE going up under all the main parties' plans.
But they prefer not to talk about this, hiding instead behind the claim that tax rates on income tax, NICs and VAT won't rise. But they've still signed up to plans which will mean the AMOUNT of taxes we're paying will rise.
2⃣The magical tax avoidance money tree.
All the parties think they'll raise enormous sums clamping down on tax avoidance.
So much that they need not raise other taxes. This is v uncertain. But since they've all done the same trick they remain silent about its ridiculousness
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You've probably heard this claim - both from @rishisunak and more recently from @Nigel_Farage 👇
UK has leapfrogged others to become the world's fourth biggest exporter! And all after Brexit!
Unfortunately the reality is somewhat less impressive than this sounds.
Here's why:
First thing to say is that the bare bones of the claim are certainly true.
Between 2021 and 2022 the UK did indeed rise from 7th in the league table of the world's biggest exporters (counting both goods and services) to 4th.
We'll get to why this happened in a moment. But still
However here's some (very) important context.
It's not like the UK has only JUST hit fourth spot. In fact, it was in 4th place in 2020. And in 2015, 2014 and 2013.
Actually if you look at the modal average of our position in the past decade it was... fourth.