Inequality 'significantly' curbs economic growth - OECD

Income inequality has a "statistically significant impact" on economic growth, according to research by the Organisation for Economic Co-operation and Development (OECD).

In the UK, rising inequality cost the economy almost nine percentage points of GDP growth between 1990 and 2010, the think tank said.

The US lost almost seven points.

The OECD also found that redistribution of wealth via taxes and benefits does not

China manufacturing activity hits six month low

Activity in some of China's factories and workshops hit a six month low in November, a fresh survey has shown.

The preliminary data from lending giant HSBC, called the purchasing manager's index (PMI), measures a number of variables including new export orders.

It showed that factory output contracted in November for the first time in six months.

China's manufacturing sector is a key driver of its economy, which is key to global growth.

The preliminary PMI reading came in at

IMF warns of low interest rates 'risk' to economy

The International Monetary Fund has warned of new risks to global financial stability.

Low interest rates could lead investors to buy riskier assets as they seek better returns, the IMF says.

In a new report, it says there is a danger that this behaviour could derail the economic recovery, which the IMF has already described as "weak and uneven".

The report says the risks require "increased vigilance".

The IMF has already given its assessment of the wider economic recovery and is concerned about

World Economic Forum: UK moves up global economic list

The UK has edged up the global rankings in a major annual economic survey by the World Economic Forum (WEF).

Its Global Competitiveness Report sees the UK rise one spot to ninth on the list, while Switzerland and Singapore retain first and second place.

The US improved its competitiveness position for the second consecutive year, climbing two places to third.

But the WEF warns that the global economy's health is at risk, despite years of monetary stimulus and reforms.

Each year, the WEF, best known for its annual Davos economic meeting, benchmarks countries against 12 factors, including infrastructure, education and training, labour market efficiency, technological readiness and innovation.

The aim is to

Where do good development ideas come from?

Where do good development ideas come from? This is an important question for the health of the global economy. As a former student of international development studies, my colleagues and I spent a great deal of time trying to understand how to formulate good development policies, the pitfalls to avoid and the unintended consequences of not knowing the local conditions and circumstances that lead to policy failure. The humility required of an economist or a development expert is