Blog posts tagged by tag: Euro Area
Fresh off its best year of growth in over a decade, the outlook for the Eurozone economy appears brighter than ever. Unemployment is falling, confidence is sky-high and even the economies on the periphery are starting to show improvement. However, several challenges are still facing the bloc, including Brexit, divergences across labor markets and a lack of agreement on the next steps for the Union. Against this backdrop, we talked with Stephen Brown, European Economist at Capital Economics, about his view of the Eurozone economy.
The situation for young people is becoming less bleak, but significant challenges remain
When twenty-one-year-old Laura Avizanda graduated from a Spanish university with a degree in business last summer, she regarded the future with trepidation. Her reaction was understandable; Spain's labor market has been an extremely hostile environment for young people in recent years.
But Laura was pleasantly surprised at how quickly she found employment related to her studies. "I started looking in early September," she says. "By mid-September, I’d found a job." Her classmates have had similar experiences, she adds.
The economic situation of Spain's young people is gradually improving, as the economy continues to recover from one of the worst crises in recent history. Firms are hiring again. Youth unemployment, while still painfully high, has dropped from its 2013 peak of over 50%. The number of young people emigrating is slowly dwindling.
The likelihood of a free trade agreement (FTA) between Mercosur and the European Union (EU) is growing. In the most recent round of negotiations held in Brasilia earlier this month, the leaders of both blocs made it clear that they are willing to move towards signing the treaty. Recent advances come within the context of growing protectionism in the United States. While prospects that the treaty will be signed are bright, we shouldn’t get ahead of ourselves. The leaders of both blocs have been negotiating for over 10 years and there are still important obstacles to be overcome.
Holland’s fragile one-seat majority government targets economic growth at the expense of fiscal sustainability
On 26 October, 225 days since the inconclusive elections in March, a new government was finally installed by King Willem-Alexander. Incumbent Prime Minister Mark Rutte was sworn in for another term, as his People’s Party of Freedom and Democracy (VVD) joined forces with the center-right Christian Democrats (CDA), the social-liberal Democrats ’66 (D’66) and the conservative Christion Union (CU). After the longest process of government formation in Dutch history, these four parties reached a deal on 10 October to form a fragile one-seat majority; the political scene in the Netherlands had been fragmented as a result of the March elections. The coalition agreement contains major reforms to the income tax system, labor market and mortgage interest rate deductions.
On 26 October, President of Catalonia Carles Puigdemont put the decision of independence in the hands of the region's parliament. The move almost guarantees that the Spansh Senate will decide on 27 October to approve measures that will allow Spain to take complete control over the semi-autonomous region's government, as Spanish Prime Minister Mariano Rajoy's conservative party holds a majority. How this all affects the economy of both the region and the country as a whole is uncertain, however, cracks have begun to show recently as the Spain-Catalonia situation has escalated.
It’s a Friday evening in Barcelona, and just as she has done for decades, Carmen Cano is making dinner. She prepares simple, rustic fare: chicken, rice and steamed vegetables. Unfortunately, this type of healthy-but-hearty dish is becoming ever more of a rarity here.
Guest blog post by Neven Valev, Ph.D., Founder and Head of Research at www.theglobaleconomy.com.
Comparing countries is a useful exercise as it puts the national economies in global context. Whether or not a country is developed in economic and financial terms is a question that makes sense only in relative terms. This article discusses the Spanish economy as an example of how to make such an international comparison. The focus is on four key areas: economic development, financial system development, rule of law, and international trade and investment. Spain is interesting as it is a large developed economy that does, however, face challenges.
Dutch Prime Minister Mark Rutte’s liberal VVD party has won again despite losing seats, keeping the far right in a largely ineffectual position. The Netherlands is one of Europe’s best performing economies, which surely helped see reason ultimately triumph over populism after a campaign dominated by much political noise from Geert Wilders’ anti-immigration party. And yet voters still punished the outgoing coalition heavily. Rutte’s party lost about a quarter of its support and its traditional coalition partner all but collapsed, with the Green-Left party making substantial gains to emerge as an unexpected victor of the night and a potential kingmaker in coalition negotiations. On the face of it the Dutch economy is doing remarkably well, yet voters were clearly not entirely happy with the political status quo. While the Liberals do battle behind the scenes to form a working majority in the fragmented Dutch parliament, we take a look at the economic situation that the new government will inherit.
The Gross Domestic Product (GDP) in the Euro Area totaled EUR 10,404 billion in 2015 and is expected to total EUR 10,607 billion by the end of this year. Analysts expect the Eurozone economy to grow a healthy 1.5% this year and 1.6% in 2017. However, the Eurozone is still facing a number of challenges and performing below its potential. High debt levels, a fragile banking sector and a persistent lack of inflationary pressure continues to impede the recovery of many economies in the region.
See below what analysts expect the GDP of each of the Euro Area countries to be by the end of 2016 (hover over the bubbles for more information):
50 analysts surveyed by FocusEconomics expect Eurozone unemployment rate to average 10.4% this year:
TagsTPP Canada Major Economies India Spain Energy Commodities Eastern Europe Consensus Forecast IMF Japan Company News precious metals South Africa Commodities Italy Trade Exchange Rate Oil Agricultural Commodities China Africa Precious Metals Commodities Gold Base Metals Commodities European Union Housing Market Unemployment rate Asia G7 Euro Area France Russia Venezuela OPEC Nordic Economies Infographic USA Brazil Mexico Greece UK Argentina Tunisia Sub-Saharan Africa Colombia Portugal Emerging Markets Cryptocurrency United Kingdom Investment Turkey Banking Sector Brexit Healthcare United States Economic Growth (GDP) Australia Latin America Vietnam Inflation Ukraine Iran Germany oil prices MENA Bitcoin Forex
In H2 the Malaysian economy should benefit from strong private consumption. Get our latest 2018 and 2019 growth for… https://t.co/oimkS9OxQS
11 minutes ago
In FY 2018 economic growth in India should accelerate thanks to fading disruptions from the demonetization of Novem… https://t.co/4C9xYnZLQf
3 hours ago
Economic growth in Sub-Saharan Africa is set to accelerate in 2019. Get more details: https://t.co/J6UhL4HDEf
6 hours ago
Despite mounting economic headwinds, the Chinese economy is expected to comfortably meet this year’s growth target… https://t.co/uePHyDNwaK
8 hours ago
8 hours ago
- Which ASEAN countries are most exposed in the event of a U.S.-China trade war?
- 75 Top Economics Influencers to Follow
- Emerging Markets Economic Outlook 2018 and 2019
- The Faces Behind Latin America’s Key Institutions
- 2019 Economic Outlook for the Top Oil Producing Countries
- Is your cup of coffee about to get more expensive going in to 2019?
- The Economic Implications of an Aging Global Population
- Can the Wisdom of the Crowds predict the results of the 2018 World Cup?
- Railway Mania: The Largest Speculative Bubble You’ve Never Heard Of
- From Riches to Rags: Have Cryptocurrencies Crashed for Good?
- Investment looks to Latin America, but forecasts are not encouraging
- Turkey: Erdogan has cemented his grip on power - now what about the economy?
- How can Latin America’s business environment benefit from technological change?
- Mexico: A look at the past, present and future as elections yield AMLO victory
- Italy’s New Populist Government and the Eurozone: Prelude to a Crisis?
- Latin America moves toward increased integration as U.S. protectionism grows
- How can Latin America increase productivity without affecting the quality of employment?
- How will Saudi Arabia's economy benefit from lifting the women's driving ban?
- Which countries are the most prepared for the upcoming digital revolution?
- India Under Pressure from the U.S. on Trade Policy
- The Story of Steel
- Latin America is the World Leader in eCommerce Growth Despite Serious Challenges
- What the TPP means for trade in Latin America
- Elections in Russia: Analysis and Implications
- Nearly a Third of Latin Americans Have No Right to a Pension
- A Look at Healthcare Models Around the World
- The Poorest Countries in the World
- Newly-elected Chilean President Sebastian Piñera faces a myriad of challenges - economic and otherwise
- The Economic Effects of Trade Protectionism
- Regional Disparity: The Dark Side of Inequality in Latin America
- Coal: The story of the world's most abundant fossil fuel
- Gold: The Most Precious of Metals (Part 3)
- Venezuela's Electoral Conundrum
- Trump's 1st Year: 95 Analysts Surveyed on U.S. Economy
- The Latest on China and What's in Store for 2018
- An in-depth look at the Eurozone’s booming economy and the challenges that lurk in the shadows
- Increasing poverty in Latin America takes a breather thanks to improving economic dynamics
- What will be the most miserable economies in 2018?
- The World's Top 10 Largest Economies
- Is Spain doing enough to address its high youth unemployment rate?
- Has Latin America gone far enough in reducing barriers to international trade?
- Commodities Outlook: Oil, Natural Gas, Coal, Lead & Tin
- 21 experts tell us what the future looks like for cryptocurrencies and blockchain
- Turkish lira plummets to all-time low on Erdogan’s monetary feud and tense U.S.-Turkey relations
- Copper: The first metal mastered by man
- The Mercosur-EU Free Trade Agreement: Obstacles & Opportunities
- Nigerian Economy Still Treading Water Thanks to Oil Sector
- Elections in Chile: What the results could mean for the economy
- QE’s Untold Story: A Chart That Fed Correspondents Need To Investigate
- Holland’s fragile one-seat majority government targets economic growth at the expense of fiscal sustainability
- South Africa: Economy at a tipping point?
- Latin American Commodities: What’s behind the increase in demand and prices?
- Is the UK really "shackled to a corpse"?
- Spain-Catalonia: 7 economic experts weigh in on how the situation will affect the outlook
- How well is Spain's labor market doing since the crisis?
- Which countries will have the highest and lowest inflation in 2017?
- How vulnerable is Latin America to economic crises today?
- Iron ore facts and common questions answered
- The bulging economic costs of obesity
- How much investment is needed to salvage Latin America’s crumbling infrastructure?
- A Look at the Potential Impact of Brexit on the Dutch Economy
- Emerging Markets Are Kicking Into Higher Gear In 2017
- Why is foreign direct investment in Latin America falling again?
- Are Central Banks Nationalising the Economy?
- Bounty or burden? The impact of refugees on European economies is far from clear
- What’s the future of U.S.-Latin America trade relations?
- Taxes or cutbacks? Latin America's challenge of sustaining spending without causing debt to skyrocket
- Are uranium prices making a comeback?
- Taxing the Economy: Achieving a Delicate Balance
- How will Latin America’s upcoming lengthy election cycle affect the reform agenda and credit ratings?
- How will emerging market economies perform in 2017?
- Chilean Economy in Focus: Interview with Senior Economist of the Chamber of Commerce of Santiago
- CEOs Rank Top Economies for Growth Opportunities
- The Mobile Ecosystem & Latin America's Economy
- Prospects and Challenges for the Global Economy: Interview with Tim Cooper from BMI Research
- How will the Fed reduce its balance sheet & and how will the ECB end QE? - 19 economic experts weigh in
- Thoughts on "unwinding" QE from Frances Coppola
- The Fed and ECB at a crossroads: Unwinding QE
- Spain: The economy that continues to silence the critics
- Latin America: The Most Unequal Region in the World
- The History of OPEC: Has it been a Success?
- FocusEconomics Announces 2017 Analyst Forecast Awards Winners
- Latin America’s rising unemployment bucks nearly decade long trend
- Escape from the Central Bank Trap by Daniel Lacalle
- China's economic rebalancing act: What to look out for in 2017
- Driving Growth in Latin America: Challenges & Priorities
- Is the Global Economy Rebalancing?
- Commodity exporters face challenging times
- Recent Global Events Facilitate Mercosur-Pacific Alliance
- 23 economic experts weigh in: Why is productivity growth so low?
- Mexico's outlook as Trump nears 100-day mark
- Interview with Oxford Economics Senior Economist on implications of the possible outcomes of the French Presidential Election
- The anxiety of the small saver in a world of negative interest rates
- Brexit negotiations. Between Uncertainty and Urgency
- An Economic History of the EU from El Blog Salmón
- Baby Boomin': Implications of high population growth in Latin America
- Survey of International Economists Predicts a Le Pen Defeat in French Elections, Says Macron has Best Economic Plan
- Spain in a global context: developed economy with some challenges
- How much is crime costing Latin America?
- Predictions & Estimates from Economist Daniel Lacalle
- What economy will the new Dutch government inherit?
- “The data is not a true reflection of reality in India” Interview with Société Générale India Economist
- What are the prospects for Emerging Economies in 2017?
- What to expect in Asia for 2017
- Top Economics & Finance Blogs of 2017
- Latam to Resume Moderate Growth in 2017 but Important Risks Plague Outlook
- 4 Key European Elections That Will Impact the Economy in 2017
- How are security concerns and political chaos affecting Turkey’s economy?
- Global growth to edge up in 2017
- Set to breach targets again? Debt and deficit outlooks for Southern European Eurozone countries in 2016 & 2017
- What does Donald Trump mean for the U.S. economy?
- How will emerging markets perform in 2017?
- The economic impact of a break in U.S.-Philippines ties
- Trump election: Base metals surge due to infrastructure plan
- 5 updates on the Venezuelan economic crisis
- Canada: When your neighbor’s house is on fire…
- Short-term pain before long-term gain? A look at French labor reform and economic growth
- Asia: Unremarkable growth & unfulfilled promises?
- How India's latest monsoon is affecting the economy
- Russian economy update in wake of OPEC deal announcement
- Innovation in Latin America: Potential Goes Untapped Due to Weak Economic Conditions
- The Wisdom of the Crowds and the Consensus Forecast
- Can the peso predict the U.S. election results?
- There's no end in sight to the Venezuela crisis
- A Look at the European Union Political Calendar
- Survey of international economists shows uncertainty surrounding elections damaging U.S. growth prospects
- FocusEconomics partners with leading online statistics provider Statista
- China: Recent postive economic data may be papering over the cracks
- Sub-Saharan Africa's 2016 & 2017 growth rates
- The Italian Dilemma: Weak banks pose risk to already faltering domestic demand
- How much money do migrants from Latin America send home?
- The U.S.' (Not So) Mysterious Case of the Missing Men
- What to expect from the G20 economies by 2020
- The Pain in Spain: Robust GDP growth cannot mask the persistent structural deficit
- Acting Man
- Alberto Forchielli
- Don't worry, I'm an economist
- Econometrics Beat: Dave Giles' Blog
- Economic Principals
- Edward Hugh Blog
- Financial Services (About.com)
- Kunal's thoughts
- Marc to Market
- Miles Kimball
- Morss Global Finance
- Of Markets & Men
- Owen Zidar
- Punto de Vista Economico
- The Capital Spectator
- True Economics