The UK’s withdrawal from the EU, which was voted for in 2016 and which became effective on 1 January 2021, has affected the British economy through three main channels. Trade with the EU has suffered, temporarily for goods and more lastingly for services. Business investment has declined since 2016 against a backdrop of uncertainty. The strain on the labour market has been heightened by lower empl... Lire la suite
Emerging economies, especially Asian countries and commodity exporters, are the most vulnerable to the structural slowdown in Chinese growth, due to their high degree of trade and financial dependence on China (loans, FDI). They are expected to be affected by falling Chinese demand and the resulting impact on commodity prices, as well as by gradual, ongoing cuts to Chinese financing.... Lire la suite
Sweden was the first country to adopt a dual income tax system, with the progressive taxation of earned income and the flat-rate tax for capital income, under the 1991 tax reform. This reform, which set out to lower taxes and broaden tax bases, has had a positive long-term impact on business investment and labour supply. It was then followed by a significant cut in aggregate tax and social securit... Lire la suite
The 2021 EY Attractiveness Survey for France confirms France’s position as European leader for incoming foreign investment in 2020.... Lire la suite
Within the framework of the Coeuré Committee, the French Treasury has developed a microsimulation tool which allows to estimate the impact of the crisis, and of public measures taken in response, on the financial health of French firms. Results show that firms’ financial health has deteriorated in 2020 compared to a year without crisis, but that public support – mostly the short-time work scheme a... Lire la suite