Despite the backlash, the SNB will face from those who are nursing potential losses that could run into billions, many analysts thought the decision was inevitable in light of next week's expected announcement by the ECB to break new ground in its efforts to inject life into the ailing 19 -
country eurozone economy.
Not exact matches
«I've heard stories of companies hedging their bets with some of the
eurozone economies,» Langrish says, explaining that some have set up accounts to pay their employees in euros should their home
country exit the
eurozone and reintroduce its old currency.
Programs of quantitative easing by the Federal Reserve in the United States and by the Bank of England in Britain have helped the
economies of those two
countries recover from the global financial crisis more successfully than the
eurozone has been able to.
Together, those drags on the
economy of the 19 -
country eurozone are a reason the bloc's unemployment rate is more than double that of the United States, and why
eurozone growth has lagged the American rebound in recent years.
In turn, this has allowed the Portuguese
economy to become one of the biggest beneficiaries of the
eurozone's robust recovery, with the IMF forecasting 2017 could be the
country's best year of growth in more than 20 years.
In terms of the actual
economy in the
Eurozone, in aggregate, I think that the
Eurozone is roughly a 1.5 % growth
economy, but again that's in aggregate so it masks the big divisions between the core
countries like Germany and the weaker
countries like Greece and Portugal, and Italy as well.
I think
countries within the
eurozone also should lift some of their controls to allow their
economies to be freer, which would encourage growth, because Europe doesn't have a high - growth potential at the moment.
Underlining the health of the German
economy compared with much of the rest of the
eurozone, an independent bi-annual report produced by a range of economic institutions for the German Economics Ministry raised its forecast for the
country's growth in 2016 from 1.6 % to 1.9 %, citing the strength of the labor market and private consumption.
And the crisis of confidence in the ability of
Eurozone countries to pay their debts has spread from the periphery to major
economies like Italy and Spain.
The
eurozone crisis intensified just as the British
economy began to enjoy a faster rate of growth than in particular southern European
countries such as Spain, Portugal, Italy and Greece.
«Of course
countries have got to make difficult decisions about their own public finances... but it's the open speculation from some members in the
eurozone about the future of some
countries in the
eurozone which I think is doing real damage across the whole European
economy.»
He is advising European leaders to: reassess the current plan in Greece - which will reportedly see its debt at 120 per cent of its GDP by 2020 -; recapitalise banks in struggling
eurozone economies; and allow the European Central Bank to buy bonds from distressed
countries.
Paralysis in the
Eurozone is causing alarm in the markets and having a chilling effect on
economies in many
countries — including our own.
A 2013 study by NERA Economic Consulting revealed that the U.S. has the highest liability costs as a percentage of GDP of the
countries surveyed, with liability costs at 2.6 times the average level of the
Eurozone economies.
The third edition of MarketPsych Indices boasts enhanced sentiment coverage of national fixed income securities and stock market indexes for the top 61 world
economies and the
Eurozone as well as expanded coverage of currencies,
countries, and agricultural commodities asset classes.