Britain's budget deficit has turned out to be smaller than previously thought in the first six months of the current tax year. However, recent data suggests that they will have to announce extra government spending cuts or taxes rises if it is to meet this year's deficit-cutting target. Britain's plans to eliminate the deficit by 2015 have been pushed back by two years as economic growth has been far weaker than predicted and its deficit still remains the largest of any major European country. 

Over the past year, high inflation has pushed the UK economy into a recession. Inflation has been caused by prices of goods rising faster than wages, also known as cost-push inflation. The weakness of consumer demand has resulted in a decrease in investment from businesses. Specifically, higher food and oil prices has been the reason as to why disinflation has been occurring slower than anticipated by the Bank of England. The issue is that with rising prices, the spending power of consumers is being diminished. 

This article discusses how Australia's unemployment rate fell unexpectedly. Unemployment decreased to 5.1% from 5.2% in July in a time in which a Bloomberg survey of 23 economists predicted it to increase to 5.3%. The reason given for this is that the labor participation rate slumped to lowest level in more than five years, a sign workers looking for jobs have exited the labor force. Unemployment had been expected to rise - although the economy grew by about 4% on the back of a strong resource industry, a stronger currency and slower global growth led to job reductions at companies including Ford and Qantas. Employment in the states of Victoria and South Australia dropped 14,800 and 9,000 respectively, but increased by 6,900 in Western Australia and 5,800 in Queensland which are centers of the resource industry.

Indonesia is threatening to slow down its economic expansion because of its  lack of spending, especially on infrastructure. At this stage, Indonesia is only  spending around 2% of its gross domestic product on capital expenditure and  infrastructure which is far below the amount needed to support Indonesia's  current economic growth.