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In the News

Turning Into 2022 - Some Important Economics News Issues

Graham Watson

29th December 2021

There are plenty of important economics and business news stories in focus as a New Year approaches.

This is a summary of the impact of the two major issues of 2021 on the global economy - climate change and COVID. Not much in the way of theory but a recap nonetheless, and a rather worrying sense that all the 'achievements' of COP26 have added more hot air to the atmosphere than they have concrete achievements.

The Resolution Foundation is forecasting here that 2022 will see millions of families see a fall in their disposable incomes as a result of higher taxes and energy bills. And what does this imply about any future coronavirus recovery?

The Guardian looks here at the energy crisis and looks at steps that individuals can take to mitigate rising energy costs. And interestingly the market isn't providing much of a solution, other than suggesting to consumers that they look to reduce energy consumption.

And what about the Chinese economy? Here is an excellent George Magnus article about the 'rise' of the Chinese economy and the factors that have caused it to stall in the recent past. He suggests that the headwinds are such that the inevitability of China overtaking the USA and becoming the world's largest economy has been lessened.

Here is a look at the past year from a UK perspective: it's a look at the nature of the post-Brexit environment, the collapse in trade between Britain and the EU, and how new trade deals will do little to overcome this.

Finally, Larry Elliott identifies five potential crisesthat could derail 2022: another variant, inflation, crises in either China or emerging markets and financial crisis.

Happy New Year everyone!

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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