10 must-read economics stories of the week

Welcome to your weekly update – a curated list of some of this week’s most interesting stories on economic growth and social inclusion.

1. Facts and figures. The total share of the manufacturing sector’s contribution to Africa’s GDP declined between 1980 and 2013, as did sub-Saharan Africa’s export share of the world’s total. Will the region continue to develop on the back of the services sector instead (consider our Africa Competitiveness Report 2015 for further reading)? (The Economist)

Source: Economist

2. Weak global growth of 2.9% this year, a slow-down in trade and emerging market output – the OECD released its latest Economic Outlook this week. (OECD)

3. Gavin Davies outlines a few reasons why the fear of global deflation (due to the commodity prices plunge) and industrial recession is likely to ease. (Financial Times)

4. Inequality grows as people age. Why? (CBS News)

5. Is the Fourth Industrial Revolution the biggest economic change the world has ever seen? (World Economic Forum)

6. Finland is pondering the introduction of a universal basic income. According to a recent survey 69% of respondents are in favour of a basic income plan in Finland. (BloombergView)

7. Since when is intergenerational mobility – the ease with which children born into disadvantaged environments can climb the income ladder – low in the U.S.? This article points to the Great Gatsby era, corroborating research around the so-called “Great Gatsby curve”. (VoxEU)

8. Cash payments in Mexico are increasingly popular, undercutting government revenues. (Bloomberg)

9. As China is “rebalancing” from a growth model based on investment and exports to one based on services and domestic consumption, this article suggests that consumption won’t do the trick anytime soon as borrowing constraints are too high. (Project Syndicate)

10. Small and medium sized enterprises are crucial drivers of economic growth and social inclusion through job-creation. How can fast-growing start-ups be identified and supported financially in developing economies? (World Economic Forum)

Author: Jennifer Blanke is Chief Economist at the World Economic Forum

Image: A worker walks on top of wooden boat at Muara Baru port in Jakarta December 8, 2014. REUTERS/Beawiharta