Guardian journalists were given access to the world’s largest income database in order to get a clear and detailed picture of the generation gapLuxembourg is not known for its world-beating exports. You could cross the country by car in an hour and hardly know it was there, unless you travelled by taxi, in which case it would leave a large hole in your wallet.But if you stopped a stone’s throw from France and approached a cluster of colourful blocks that rise out of an old industrial site, you would be close to one of the country’s best-kept secrets.Related: Generation Y: a guide to a much-maligned demographicRelated: Revealed: the 30-year economic betrayal dragging down Generation Y’s income Continue reading...

After years of political turmoil, Ivory Coast’s budget minister hopes booming economy and improved infrastructure will create climate to attract investmentAs many economies in Africa wrestle with the consequences of a slowdown in China and depreciating currencies, Ivory Coast has bucked the trend. The country is enjoying strong growth and focusing on infrastructure projects, job creation, and improving its business climate to win back investors after years of political paralysis.Leading the economic charge is former Goldman Sachs trader Abdourahmane Cissé, the 34-year-old budget minister, who says the world’s top cocoa producer is strong enough to weather external shocks, while stability is almost guaranteed.Related: Boom town: Abidjan flourishing as Ivory Coast heads to polls – in picturesRelated: Does the international criminal court help to end conflict or exacerbate it? | Alex VinesRelated: Yaya Touré: Africa's youth can be driving force to win the development gameRelated: Ivory Coast president tours country's first chocolate factory Continue reading...

Analysis finds gap of £5,732 or 24% in average annual salaries in UK, prompting calls for more to be done to tackle problemWomen are likely to earn £300,000 less than men over their working lives, according to a new analysis that has sparked fresh calls for more shared parental leave to close the UK’s stubborn gender pay gap.Before International Women’s Day on Tuesday, figures show a gap of £5,732, or 24%, in average full-time annual salaries between women and men – more than four decades after the Equal Pay Act of 1970 was introduced.Related: Website aims to get female teachers back to work after pregnancy Continue reading...

The Bank of International Settlements warns that trouble has been brewing ‘a long time’ but central bank options are dwindlingA fragile calm in global financial markets has given way to all-out turbulence, the Bank of International Settlements has said, warning of a “gathering storm” which has long been brewing.

Signs of improvement in industry after dismal 2015, according to manufacturers’ organisationUK manufacturers are hopeful they can eke out some growth this year after the 2015 slump, but worries about the world economy will continue to weigh on hiring and investment plans, a survey of the sector found.

Rules designed to hold executives to account come into effect alongside new offence of failing to prevent bank collapseThe City’s top regulator has said a new system designed to hold bank executives to account is “not about trying to get heads on sticks”.The new regulatory regime, which came into force on Monday and holds top executives responsible for failures in banks, has been watered down since it was first proposed, though Tracey McDermott, the acting head of the Financial Conduct Authority, insisted it would still have a major impact.Related: Jeremy Corbyn claims City firms treat ordinary workers like 'cash cows' Continue reading...

We look back over seven years of ultra-loose monetary policySeven years ago on Saturday (5 March), the Bank of England slashed interest rates to a record low of 0.5%. At the time, the cut and plans to pump billions of pounds of electronic money into the economy seemed like an emergency measure to cushion the UK from the global financial crisis. But borrowing costs are still at their record low and amid warnings that a new global slump is around the corner, Bank policymakers show no signs of raising rates any time soon.We look back over seven years of ultra-loose monetary policy: Continue reading...

There is a disconnect between what indicators say and what workers feel. A hard look at the numbers shows all isn’t well

America’s non-farm payroll beats forecasts, but slight fall in average earnings ‘taints’ the picture

Service sector slowdown caused by financial market turmoil and fears of Brexit are likely to keep rates at historic lowThe UK is set for another year of record low interest rates, economists have predicted, following news that the dominant services sector suffered a sharp slowdown last month.Worries about the EU referendum, turmoil on financial markets and a faltering global recovery all took their toll on confidence among the UK’s services businesses and knocked their growth to a three-year low, according to a closely watched survey.

GDP fell 3.8% in 2015 as collapse in oil prices, rising inflation and political turmoil took tollBrazil’s economy suffered its worst slump for quarter of a century last year as a global commodity rout, a domestic political crisis and rising inflation forced businesses to slash spending and jobs.Related: Brazil: Moody's becomes third rating agency to label country's debt junk Continue reading...

As his candidacy falters, where can that rapturous energy be channelled? Into building an economy that serves ordinary people, and excludes the 1%On Tuesday night I attended a Democratic caucus in a ballroom at the University of Colorado Boulder, where hundreds of college students rallied for the man they hope will become the oldest president in history. Speeches for Hillary Clinton received polite applause, while any reference to Bernie Sanders caused a short period of rapture.

Business activity and new work are weakest for nearly three years, mirroring gloomy reports in China and eurozoneWorries about the EU referendum, turmoil on financial markets and a faltering global recovery have hit confidence among the UK’s services businesses and knocked their growth to a three-year low.A closely watched survey of companies in the UK’s biggest sector, which covers hairdressers to insurers, showed business activity and new work both expanded at the slowest rate since March 2013.Related: UK service companies anxious about year ahead Continue reading...

Labour leader tells business leaders it was ‘extractive’ banks that drove the economy to the ‘point of collapse’ in 2007Jeremy Corbyn is to accuse City firms of treating ordinary workers like a “cash cow” as he calls for more state investment.In a speech to business bosses, the Labour leader will say it was the “extractive” banking industry rather than the government that drove the economy to the “point of collapse” in 2007.Related: What the bank results tell us about their and UK economy's healthRelated: Why on earth would HSBC leave a country that gives banks an easy ride? | Prem Sikka Continue reading...

Loose monetary policy has ‘annihilated’ returns on cash, but mortgage borrowers and investors have benefitedSeven years of quantitative easing (QE) and record low interest rates have cost savers an estimated £160bn, but supported strong increases in the prices of property, stocks and bonds.Analysis by financial firm Hargreaves Lansdown suggests that up to £106bn is being held in accounts paying no interest, as loose monetary policy has “annihilated” returns on cash. Continue reading...

World’s largest asset manager says vote to leave EU could trigger lower growth and investment in BritainThe world’s largest fund manager, BlackRock, has warned that a Brexit vote would damage Britain’s economy by leading to lower growth and investment, and possibly higher unemployment and inflation.In a gloomy analysis, the US asset manager said a decision to leave the EU would also hit the pound and UK equities, as well as damaging Britain’s financial industry, the London property market and the fashion industry. Continue reading...

Dollar rises after output expanded by a better than expected 0.6% in the December quarter to give strong annual growthAustralia’s economy has weathered the end of the mining boom more strongly than expected after official figures showed that it grew by 3% in 2015.Related: Australia's investment figures stink, but one area smells a bit sweeter | Greg Jericho Continue reading...

Sales of super-yachts rose 40% last year despite number of millionaires and ultra rich falling, according to wealth reportThe global super rich continued to splash out on super-yachts and luxury goods last year, despite a decline in their overall wealth in the wake of financial market turmoil.According to the latest wealth report from estate agents Knight Frank, published on Wednesday, sales of super-yachts – boats longer than 24 metres – soared 40% in 2015, with the rich roaring off to ever more far-flung destinations, such as the Antarctic and outposts in Asia, rather than their traditional ports of call in the Mediterranean and the Caribbean.Related: World's 20 richest people are $70bn poorer, says Forbes Continue reading...

Factory output contracted in China and UK last month, while growth slowed in other major economies including USChina’s factories have stumbled through last month’s new year celebrations to join a broad decline in manufacturing across Europe and the US, adding further evidence of sharp downturn in the global economy since the beginning of the year.Factory output contracted in China and the UK during February while growth slowed in France, Germany, Italy and the US to indicate that businesses and consumers remain wary of committing themselves to large orders while the direction of global trade remains uncertain.

The debate on the EU referendum has thus far repeated that of the Scottish independence referendum – unlike parliamentary elections, where debate is (or can be) on policy built on evidence, a single-issue referendum on a constitutional/economic issue risks descending into an exchange of guesswork built on anecdote (Boris has just launched his latest myth, 27 February).I suggest that it would better if both sides provide a manifesto with policy detail and projected consequences for our country five and/or 10 years from now. The out campaign manifesto should, among other things, clarify which model is proposed for UK-EU relations (eg the Norway model? Or a trading relationship as with a comparably-sized economy like, say, South Korea? Or a new and unique model – to be specified?); and which specific EU laws would be repealed with newly re-established exclusive sovereignty, and with what effect? Continue reading...

All the day’s economic and financial news, as manufacturers across the globe suffer a poor February

The average British person is consuming fewer things. Perhaps we are slowly beginning to realise that less really is moreBritain has fallen behind most of Europe when it comes to consumption, but it shouldn’t be seen as a negative; we could be at the forefront of a positive trend for more thoughtful purchasing.Recent data from the Office for National Statistics shows the average person is consuming fewer resources than they were a decade ago, recording a fall from 15 tonnes of material in 2001 to 10 tonnes in 2013. We also use less material per person than any other European country bar Spain.Related: UK consumes far less than a decade ago – 'peak stuff' or something else?Related: Why I'm buying nothing for a year – no clothes, no holidays, no coffee ... Continue reading...

Usdaw calls for talks with British Retail Consortium amid concerns women could bear brunt of predicted 900,000 job lossesFemale workers will be disproportionately hit if a prediction of almost 1 million job losses from the UK’s retail sector becomes a reality, the industry’s trade union has warned.Related: UK retail sector predicted to cut 900,000 jobs Continue reading...

Bloc slips into negative inflation for third time in a year prompting fears eurozone is heading for deflationThe European Central Bank is under growing pressure to step up support for the eurozone’s flagging economy after the bloc slipped back into negative inflation in February.The surprise drop in prices marked the third time in a year that inflation has turned negative, fanning fears that the eurozone is headed for all-out deflation – a sustained period of falling prices. The news cemented market expectations that the ECB would use its meeting next week to inject fresh cash into the single currency bloc and to cut a key interest rate further into negative territory.Related: Central bankers on the defensive as weird policy becomes even weirder Continue reading...

The People’s Bank of China has loosened rules on banks’ cash reserves for the fifth time in a year in the hope cheaper loans will be made availableChina’s central bank has stepped up action to bolster its cooling economy by loosening the rules on banks’ cash reserves in the hope that they will offer cheaper loans.By cutting the reserve requirement ratio (RRR) – the amount of cash that banks must hold as reserves – the People’s Bank of China has in effect injected $100bn (£72bn) of long-term cash into the economy, experts said.Related: Chinese shares slump 6% as Beijing tries to reassure markets ahead of G20 Continue reading...

Country’s default on $82bn foreign debt in 2001 sparked long-running saga with creditors led by US hedge fund Elliott ManagementArgentina’s new president, Mauricio Macri, struck a $4.65bn agreement with the US creditors on Monday, ending a 15-year debt dispute between Argentina and a number of holdouts led by US billionaire financier Paul Singer.Related: Argentina's former president suspected of role in peso inflation scheme Continue reading...

All the day’s economic and financial news, as UBS says sterling would suffer a sharp correction if Britain votes to leave the EU

Labour leader says former Greek finance minister is helping the party ‘in some capacity’The former Greek finance minister Yanis Varoufakis is giving advice to the Labour party, Jeremy Corbyn has revealed.In an interview with his local newspaper, the Islington Tribune, the Labour leader disclosed that Varoufakis was helping “in some capacity”. Continue reading...

People are less likely to seek help if they fall behind on household bills, but this has become a bigger issue than loans, overdrafts and credit cardsFor many people, being in debt and being financially excluded are two sides of the same coin. Debt can be both a consequence and a cause of financial exclusion.It is easy to see how households can become trapped in a vicious cycle. To understand how we can help them out of it, it is important to understand just how quickly the UK’s personal debt landscape is changing.

Deciding where to base your enterprise can affect its chances of success. From funding opportunities to local talent, we look at the cities that come out on top

Treasury select committee chair Andrew Tyrie calls for shakeup of Office for National StatisticsAndrew Tyrie, the chairman of the Treasury select committee, has called for sweeping changes to how the UK produces official statistics to improve the quality of economic data.Chancellor George Osborne should use March’s budget to launch a shakeup of the Office for National Statistics (ONS), urged Tyrie, who recently criticised the body for falling behind its international peers and jeopardising policy decisions with “rubbish” statistics. Continue reading...

Resolution Foundation thinktank says 5m extra hours a week are needed to free up part-time roles for new entrants and the economically inactiveMillions of UK workers are stuck in the wrong job or working fewer hours than they would like, according to a report warning that this army of underemployed people are blocking opportunities for those outside the labour market.The Resolution Foundation thinktank said that 5m extra hours of work a week are needed to soak up employees’ demands for more work. Moving those underemployed into longer hours would free up their part-time roles for new entrants, including those currently defined as economically inactive – many of whom have health problems or caring responsibilities. Continue reading...

Brexiters play down the difficulties of renegotiating trade and other deals, but the process of withdrawal could take yearsFor the first half century of its existence, joining the club of nations that became the European Union was, in legal terms at least, forever. Once inside, there was no way out.But the Lisbon Treaty, which came into force in 2009 to streamline the EU’s working practices after it had expanded to include the former communist states of eastern Europe, also signposted the exit for the first time. Continue reading...

The people of the republic have suffered. Now it is the politicians’ turnThe voters don’t do gratitude, self-pitying politicians are wont to moan. For technocratic admirers of Dublin’s outgoing Fine Gael/Labour coalition, the Irish election of 2016 has proved the point. In 2011, a near-bankrupt and recently bailed-out republic turned to Enda Kenny as a new broom, and his government enjoyed a record majority. Five years on, the economy is growing at quite a pelt, an unemployment rate which had been at 15% is back down in single figures, and after years of retrenchment the government has – finally – got its own debt back down below 100% of GDP. Europe’s economic authorities, who have had precious few austerity success stories to point to, have clung on to Ireland as a case that shows the medicine can work.But by routing Mr Kenny with unexpected ferocity, the voters have revealed that they do not see things this way at all – and don’t assume that they are wrong. For several years into the technical recovery, living standards continued to slide. While protesters against stiff new water charges were briefly locked up, the bankers who led Ireland into the mire still walk free. Wages remain insecure, and public services – which were always patchier in Ireland than the UK – have become less adequate. The bill for the crisis was passed to citizens who had nothing to do with its cause, and now the people are justly seething. Continue reading...

George Osborne has been determined to pursue cuts even as the economy struggles. But continued austerity now could be truly damagingSeven years ago this week, the Bank of England cut interest rates to 0.5% – the lowest since the central bank was founded in 1694. In a drastic bid to stem the fallout from the global financial crisis, then governor Mervyn King and his fellow policymakers also kicked off the process of pumping tens of billions of pounds into the economy.Unsurprisingly, Labour chancellor Alistair Darling welcomed the flood of money. The economy had been battered by recession, house prices were falling and unemployment was high.Related: George Osborne warns of further cuts as 'storm clouds' gather Continue reading...

The former Bank of England governor says in his new book that imbalances in the global economy makes a crash inevitableAnother financial crisis is “certain” and will come sooner rather than later, the former Bank of England governor has warned.

RBS, Lloyds, HSBC and Standard Chartered insist they are strong enough to withstand another global downturn, but is that what their figures reveal?Four of Britain’s biggest banks reported annual results this week and insisted they were robust enough to withstand another global downturn. But what did the results for HSBC, Standard Chartered and the bailed-out duo of Lloyds Banking Group and Royal Bank of Scotland tell us about the industry and the wider economy?Related: British bank annual results – interactive Continue reading...

Chancellor says he will address gloomy economic outlook in budget and ‘this country can only afford what it can afford’George Osborne has warned he may have to impose bigger than expected cuts to public spending towards the end of the current parliament as the “storm clouds” in the global economy hit economic growth.In a move to prepare the ground for a sharp deterioration in the public finances in the budget next month, the chancellor said the recent fall in nominal GDP numbers showed the British economy was smaller than expected.Related: IMF urges G20 to take 'bold action' on global economyRelated: It’s the £30bn cut you’ve never heard of. And women are bearing the brunt | Gaby Hinsliff Continue reading...

New figures revising economic growth upward suggest US economy may be able to withstand a global slowdown better than many economists anticipatedThe recent economic slowdown in the US may have been less severe than previously estimated, according figures released by the Commerce Department on Friday.