The International Monetary Fund’s annual get-together comes as the new China-led infrastructure bank AIIB underlines the global shift in the balance of powerFinance ministers and central bankers from more than 100 countries will gather at the International Monetary Fund in Washington next week amid a diplomatic spat over China’s plans for a rival financial institution.The IMF’s regular get-togethers of policymakers, held jointly with the World Bank, have been a fixture on economists’ calendars since the birth of the so-called Bretton Woods institutions after the second world war. Continue reading...

As mainstream politics moves to the centre, what has happened to the beating heart of the left? Zoe Williams takes a road trip in search of 21st-century socialistsRosie Rogers, 28, and I are sitting in a tipi outside her office in Highbury, London. (She works for Greenpeace as a political adviser – of course they have a tipi.) I’m on a quest to find the British left, because it’s become apparent no one quite knows where it has gone, or what it looks like. Far from a beating heart, these days it is made up of many small organisations. “You know the Brownies,” Rogers asks. “You have all those patches? We have so many patches. You have your Reclaim the Power badge, your Focus E15 badge, your UK Feminista badge, your UK Uncut badge. It feels like ‘the left’ isn’t how people identify any more. We don’t say, ‘I’m a lefty, I’m a socialist, I’m a Marxist.’ Sometimes I’m a bit Women’s Institute, sometimes I’ll sign a 38 Degrees petition, sometimes I’ll go on a climate march.”Quick glossary: Reclaim the Power is a grassroots environmental movement; Focus E15 is the housing protest that started when Newham council in London tried to shunt some single mothers out of a hostel to private rentals 100 miles away (it started tiny, but now has 10,000 supporters); UK Feminista does what it says; UK Uncut, which has a network of 80,000 people, opposes corporate tax avoidance and austerity measures, in whatever way they think will work.In these movements we all sleep together, we all hang out… It’s participatory, consensus-based, dynamic, funI thought: why is anyone going to listen to a brown man? I didn’t feel I could connect with the people in politicsI sat next to a young campaigner on poverty who thought people over 40 were pointless. We’d had our chance, and blown itThe difference between right and left politics, this division is no longer useful Continue reading...

Almost a third of recruiters surveyed by industry body reported increased starting pay, but KPMG warns that talent shortage could slow economic growthSkills shortages are driving increases in pay, with almost a third of recruitment agencies reporting improved starting salaries, according to a study.Pay growth was especially strong in the Midlands and the south, said the report from KPMG and the Recruitment and Employment Confederation (Rec). Continue reading...

Christine Lagarde has grown frustrated at pace of policies to spur growth and now warns of a ‘low-low-high-high’ scenarioThe boss of the International Monetary Fund has made an impassioned plea for governments to make the next decade one of sustainable and inclusive growth that cuts national debt burdens and tackles high unemployment.Christine Lagarde warned that developed and emerging economies still suffering the after-effects of the 2008 crash must collaborate better to avoid an era of low growth. Continue reading...

Harold Wilson’s 1970 re-election campaign took a knock from a 0.2% deficit in goods but now a near 7% figure hardly warrants a mentionA bad set of trade figures just ahead of the election. For those with long enough memories, news that Britain’s trade deficit almost doubled in February harks back to the 1970 election, when Harold Wilson’s campaign was jarred by a rise in imports caused by the arrival of two new Boeing jumbo jets.Like David Cameron, Wilson had been going around the country insisting that his long-term economic plan was working. The widening of the trade deficit, though, cast doubt on whether the government’s export drive following the devaluation of the pound in 1967 was actually delivering.Related: Widening UK trade deficit prompts fears for growth Continue reading...

Not since Clement Attlee’s Labour government was elected following the second world war have rates remained unchanged for the duration of a parliamentBritain will go a whole parliament without an increase in interest rates for the first time since the immediate aftermath of the second world war, after the Bank of England left official borrowing costs on hold.Threadneedle Street said it had left the bank rate unchanged at 0.5% following the meeting of its nine-strong monetary policy committee, extending a run that began more than six years ago when Gordon Brown was prime minister and Alistair Darling chancellor.Related: From MacDonald to Cameron: UK interest rates and prime ministers Continue reading...

Analysts warn recovery may be waning as ONS reports deficit on goods and services nearly doubled in February to £2.9bn from £1.5bnBritain’s trade deficit with the rest of the world widened sharply in February, in the latest sign that economic growth may have moderated in the first quarter of the year.The Office for National Statistics said the deficit on goods and services was £2.9bn in February, up from £1.5bn in January, with the worsening picture mainly caused by a slowdown in goods exported to non-EU countries, particularly the US.Related: UK trade deficits used to matter at election time - not any more Continue reading...

The arithmetic of Scottish financial independence has changed drastically since last year’s referendumNicola Sturgeon faced criticism in the Scottish leaders’ debate on Wednesday night over the tax and spending implications of giving Scotland full financial independence.

Stock markets rise as Athens makes repayment to International Monetary Fund but anxiety continues over eurozone country’s ability to keep servicing its loansMarkets have breathed a sigh of relief after Greece made a €450m (£330m) loan repayment to the International Monetary Fund.“The payment has been made,” a Greek government official told Reuters on Thursday. Continue reading...

British Chambers of Commerce’s survey of 7,500 firms shows growth in domestic sales and exports slackened, raising doubts about underlying health of economyBritain’s businesses experienced a slowdown in economic expansion in the first three months of 2015, with both manufacturers and services hit, according to the latest quarterly survey by the British Chambers of Commerce.After a strong reading in the final quarter of 2014, the BCC’s health check of 7,500 companies showed that growth of domestic sales and exports slackened across the UK this year, raising doubts about the underlying strength of the economy. Continue reading...

Greek minister sees signs that Berlin acknowledges that compensation should be paid for Nazi wartime atrocities ‘despite disagreeing with the figure’The row between Germany and Greece over war reparations has intensified after Athens hit back at Berlin’s description of its demand for a staggering €278.7bn (£202bn) in compensation as “stupid”.Insisting that Greece’s leftist-led administration had “a historical duty” to seek compensation for atrocities committed by Nazi forces between 1941-44, the politician in charge of the campaign said on Wednesday that he welcomed the German reaction.Related: Alexis Tsipras in Moscow asks Europe to end sanctions against Russia Continue reading...

Central bank says US economic growth has slowed, adding weight for officials who want to delay first interest-rate hike since global recessionThe Federal Reserve said on Wednesday that growth in the US economy had slowed and officials were divided on whether to raise interest rates for the first time since the global recession.Releasing the minutes of its March meeting, the Fed said officials had discussed the moderation of gross domestic product – the broadest measure of the economy – in the first quarter, even as the job market continued to improve. Continue reading...

Greek leader’s ‘springtime for Russian-Greek relations’ fails to extend to bailout loans from Vladimir Putin, but he warns sanctions could cause ‘new cold war’

Politicians, media and public hostile to call for reparations, seeing it as an obstacle to resolving debt issue, even if many acknowledge war crimes against GreeceGermany has become increasingly disparaging of Greece’s demand for €278.7bn (£202bn) in reparations for the Nazi occupation of the country during the second world war.The country’s vice-chancellor and economy minister, Sigmar Gabriel, who is also leader of the Social Democrats, dismissed the Greek demands, saying: “Honestly, I think it’s stupid.” He added that the issues of Greece’s debts and Germany’s war reparations were separate, and that such talk would not move forward negotiations “by one millimetre”.Related: Greece puts figure of €279bn on claim for German reparations Continue reading...

A slower pace seems like common sense after a decade of tremendous growth as Beijing tries to calm things down, but it depends on whom you askI just spent a week in China, where I participated in the Boao Asia Forum, a conference similar to the annual gathering of the World Economic Forum in Davos. The topic of my panel was what president Xi Jinping has called the Chinese economy’s “new normal”: an era of relatively slower growth, following three decades of double-digit economic expansion.But what strikes me most about China’s economy is how remarkable it is. Indeed, its performance continues to astound me. Though it undoubtedly faces plenty of challenges, the key question is how likely they are to bring down the economy. Continue reading...

In this interview originally published in 2013, Nicholas Lovell discusses the way in which agile businesses in this disruptive digital era can turn super fans into a sustainable income Continue reading...

International Monetary Fund says delegating investment decisions to large asset managers, as many savers do, can ‘induce destabilising behaviour’Fund management companies that invest billions of pounds of savers’ money pose a threat to global financial stability and regulators should police them more closely, according to the International Monetary Fund.Delegating day-to-day investment decisions to large asset managers, as pension funds and many individual savers do, “introduces fundamental incentive problems between end investors and fund managers, which can induce destabilising behaviour and amplify shocks,” the Washington-based organisation says. Continue reading...

For the moment, the two are going in opposite directions, a temporary result of curbs on mortgage lending in response to market showing signs of overheatingMarch 2015 was a great month to be selling new cars in Britain. Almost 500,000 were shifted, making it the best month the motor trade has had this century, according to the Society of Motor Manufacturers and Traders. It was the 37th month in a row that there has been year-on-year growth in business.It was not a great month to be flogging houses. Demand for mortgages, according to the Bank of England, fell significantly in the first quarter of the year, continuing the trend seen in the final three months of 2014. Continue reading...

Paris-based organisation says development assistance to impoverished countries plunged 16% last year, despite pledges from ministers to provide more aidThe west’s leading thinktank has urged wealthier countries to step up and help the world’s poorest, after revealing that aid to the most impoverished nations fell by a sixth in 2014.An annual assessment of overseas development assistance from the Organisation for Economic Cooperation and Development in Paris found that aid to the least developed nations stood at $25bn (£16.7bn) last year – a 16% drop from 2013. Continue reading...

If governments had taken a hands-on approach to industrial development the UK wouldn’t have suffered the huge loss of secure jobs we’ve seen in recent years‘There is no alternative.” It is the slogan, battle cry and sneer of our era. It is ever present in this general election, like a police sentinel guarding a sacred political consensus, batoning anyone who deviates from received wisdom. The fortunes of Britain’s richest 1,000 can double in a period of economic trauma while hundreds of thousands depend on charities to meet that most basic human need, food. A proposed mansion tax levied on a tiny fraction of the population is met with accusations of cruelty while predominantly poor disabled Britons are compelled to shell out money they don’t have because they are deemed to have a spare bedroom, all in order to balance the nation’s books. More than 400 people can be paid over £1m at one business alone, Barclays Bank, when the whole country of Japan has fewer than 300 executives paid that amount. Why? Because there is no alternative: either policies are pursued that guarantee the concentration of wealth and power in the bank accounts of a tiny elite, or the rich will flee and the economy will collapse.Britain’s booming elite is soaked with triumphalism. It believes its traditional enemies – principally a trade union movement and political left with a coherent ideology and mass following – have been seen off. This elite is flattered, comforted and protected by an ideology that equates the perpetual enrichment of the wealthy with the wellbeing of the nation, promoted by a media owned by its own kind, an academy largely emptied of intellectual dissidents, and a network of thinktanks kept afloat by corporate and well-to-do private individuals. Any puncture, however small, to this suffocating triumphalism is welcome: to those of us who reject the status quo, it is like coming up for air.Any puncture to this triumphalism is welcome: to those of us who reject the status quo, it's like coming up for airRelated: Interrogating the entrepreneurial stateA maximum pay ratio would stop CEOs paying limitless salaries and bonuses while their cleaners languish in poverty Continue reading...

As Greek and Russian leaders prepare for talks today, The Moscow Times weighs up their relationship – and the prospects of a meaningful dealThe Greek prime minister, Alexis Tsipras, will meet Vladimir Putin in Moscow today while the west is left guessing as to whether the pair will hammer out an economic deal.Financial aid from the Kremlin would give Athens breathing space in its debt repayments, but analysts say that the countries may be more interested in grandstanding than a dramatic diplomatic realignment.Related: Alexis Tsipras flies to Moscow amid speculation of bailout from Putin Continue reading...

BRC-Neilsen index finds shop prices 2.1% lower in March than a year ago, and predicts that shoppers will buy more due to incomes growing in real termsBritish shoppers have enjoyed the biggest falls in the price of food, clothing and electrical goods for almost nine years, as supermarkets fight for customers and the global slump in oil prices continues to feed through to the high street.

Rarely has a UK election been of greater interest to Ireland: a Tory win could be catastrophic for the Irish economy if it triggered Britain’s exit from the EUA general election in Britain is always watched closely on the other side of the Irish Sea, not least because of the tumultuous political history linking the two islands. But never has an UK election been of greater interest to Ireland’s business community, amid fears that if the Conservatives win, it could spell catastrophe for the country’s economy.A win for David Cameron would trigger a referendum on membership of the European Union, which if it results in a British exit would send shockwaves through Ireland’s economy. Each week there is €1bn (£730m) in trade between the two countries, supporting about 400,000 jobs. Continue reading...

Jim Yong Kim endorses rival development bank AIIB, saying new initiative could help end extreme poverty if it ensures high standards for projectsThe World Bank plans to work together with the Chinese-led Asian Infrastructure Investment Bank to fight poverty and fund infrastructure projects, the World Bank president, Jim Yong Kim, has said.Worried about China’s growing diplomatic clout, the United States has been urging countries to think twice about joining the AIIB, arguing that its projects may not adequately safeguard the environment and people. Continue reading...

Sigmar Gabriel throws out Greece’s demand for €278.7bn, but opposition parties argue for return of forced wartime loan from Athens amounting to €10.3bnGermany’s economy minister has branded Greece’s demand for €278.7bn (£203bn) in second world war reparations as “stupid”, but the German opposition said Berlin should repay a forced loan dating from the Nazi occupation.The Greek deputy finance minister, Dimitris Mardas, made the demand on Monday, seizing on an emotional issue in a country where many blame Germany, their biggest creditor, for the tough austerity measures and record high unemployment that accompanied two international bailouts totalling €240bn.

Washington-based organisation said policy reforms and investment are the only means of raising growth to pre-crisis levelsThe International Monetary Fund has warned that the world’s major economies risk a long period of low growth unless governments do more to overcome the after-effects of the financial crisis and the longer-term problem of ageing populations.The Washington-based organisation, best known for acting as lender of last resort to Greece, Ireland and Portugal, said without a switch to policies that spur growth, governments would struggle to shift excessive debts and cut long-term unemployment. Continue reading...

FPC fears financial markets may turn against UK economy in time of stress as gap between money paid out and money brought in was 50% higher than expectedThe UK’s large current account deficit could cause financial markets to turn against the British economy in a time of stress, the Bank of England has said.The Bank’s financial policy committee (FPC) discussed the current account deficit at its most recent meeting in March and decided to keep it under close review, the meeting minutes showed.

Success will come if the new Asian Infrastructure Investment Bank acts more as a knowledge bank rather than a funding vehicle

Survey of services, construction and manufacturing indicate UK plc grew by 0.7% in first quarterBritain’s services sector moved up a gear in March, boosting George Osborne’s hopes of strong economic growth ahead of next month’s general election.Rising order books and increased foreign investment pushed the Markit/Cips purchasing managers’ index (PMI) for the service industries, which account for about 77% of the economy, to a seven-month high. Continue reading...

Employer group says UK too reliant on services for growth and rise in sterling, especially against euro, has hit export ordersThe soaring value of the pound has battered Britain’s manufacturing exports, leaving the economy reliant on the consumer-driven services sector for growth, the CBI has warned.The business lobby group said the UK economy looked likely to gather momentum over the coming months after a steady performance so far this year, but said the strong pound had triggered a slide in export orders. Continue reading...

Greek finance minister meets with senior officials in hope of shoring up support from the US to protect country from expulsion from eurozoneYanis Varoufakis, the Greek finance minister, has continued efforts to drum up support in the US for his debt-stricken country as speculation mounted over the ability of the Athens government to survive in its current form.Extending his charm offensive to Washington DC, the flamboyant finance minister held talks with senior administration officials after meeting IMF managing director Christine Lagarde and attempting to allay fears of an imminent Greek default.Related: Greek government takes desperate measures in battle to stay afloatRelated: Alexis Tsipras looks to Moscow but risks becoming Putin’s useful idiot | Natalie Nougayrède Continue reading...

Conservative and Labour pledges on education disguise the effects of upcoming cuts and contribution increases at the heart of the union’s proposal to strikeThe National Union of Teachers’ approval for a strike ballot brings to the fore a dirty secret shared by the Conservatives and Labour: that funding for schools in England will see steep cuts based on the promises both parties have made.It is an issue that has largely flown under the election campaign radar so far, but schools and local authorities across England are now having to deal with the scope of the cuts as they set their budgets for next year, with many saying they are being forced to dip into their reserves to maintain staffing.Related: Teachers' union backs ballot on strike tied to schools funding Continue reading...

The Swedish term ‘lagom’ is the perfect term to describe an economic system where just enough is produced and consumed. But is this an achievable goal?The current capitalist economic system is in continual crisis. As Thomas Friedman, said in a New York Times op-ed: “What if the crisis of 2008 represents something much more fundamental than a deep recession? What if it’s telling us that the whole growth model we created over the last 50 years is simply unsustainable economically and ecologically and that 2008 was when we hit the wall, when mother nature and the market both said, ‘no more’.”

Yanis Varoufakis assures IMF’s Christine Lagarde that Athens will repay €450m loan on Thursday as pressure mounts over slow-moving negotiations

While economists are divided over when the Bank of England will end this current spell of steady interest rates, no one expects rates to match their 1940-1951 runThe Bank of England is expected to leave interest rates on hold at 0.5% this week, marking the first time in more than half a century that a government has enjoyed unchanged borrowing costs for its entire term.Interest rates were slashed to a record low of 0.5% in 2009 in a bid to stem the fallout from the global financial crisis. They have remained there ever since, with ultra-loose monetary policy the backdrop throughout the coalition’s time in office beginning in 2010. Continue reading...

Warning from Corn Flakes maker comes amid international pressure to close tax loopholesKellogg’s has warned that its profits could be hurt by the international drive against tax avoidance, which is targeting structures that benefit multinationals.The US-based maker of Corn Flakes, Rice Krispies and Coco Pops is worried that attempts to close tax loopholes would lead to a “material” increase in its income tax bill.

With a rise in VAT, national insurance and income tax off limits, the Treasury has picked up on the idea that the financial sector is under-taxedSolemn commitments have been made. David Cameron and Ed Miliband have wrung promises out of each other. The tax arms race has escalated to the point where the options available to Labour and the Conservatives for raising extra revenue are narrowing.Yet, taxes are still likely to go up once the election is over. Traditionally, political parties that say “they have no plans” to raise taxes before polling day find a compelling reason to do so as soon as voters have made their choice. As the Institute for Fiscal Studies has noted, if a government is going to raise taxes, it does so in the first budget after a general election. Continue reading...