Blog posts tagged by tag: Euro Area
Despite boasting the eighth-largest economy in the world, growth in Italy has stagnated for more than two decades. Economist Massimo Bassetti give us his six reasons for Italy’s weak economic growth over the last few decades:
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):
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Analysts see base metal prices rising 7.6% year-on-year in Q4 2019 (last month: +6.2% yoy). Read more: https://t.co/KlgaC9IbxP
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The Guatemalan economy is projected to expand 3.1% in 2019 and 3.0% in 2020. Read more: https://t.co/JdM2ep1Com
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Argentina's inflation is expected to be 29.0% at the end of 2019, which is up 1.2 percentage points from last month… https://t.co/6Z6z1lcdgY
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GDP in Brazil is seen growing 2.4% in 2019, which is up 0.1 percentage points from last month's forecast, and expan… https://t.co/hHt506suN2
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Agricultural prices are expected to increase 5.6% year-on-year in Q4 2019 on solid food demand thanks to the world'… https://t.co/rBF0qJ4clw
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- The Economic Implications of an Aging Global Population
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- 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?
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- What the TPP means for trade in Latin America
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- The Economic Effects of Trade Protectionism
- Regional Disparity: The Dark Side of Inequality in Latin America
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- 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
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- Is Spain doing enough to address its high youth unemployment rate?
- Has Latin America gone far enough in reducing barriers to international trade?
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- 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
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- Nigerian Economy Still Treading Water Thanks to Oil Sector
- The Mercosur-EU Free Trade Agreement: Obstacles & Opportunities
- Elections in Chile: What the results could mean for the economy
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- 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?
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- 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
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- 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
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