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.
-LRB-...) The strength of demand for eurozone «periphery» debt reflected increased investor appetite for higher - yielding government bonds as well as rising confidence in the creditworthiness
of eurozone economies.
«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.
The uncertain state
of the eurozone economy may become clearer on Wednesday when the European Union statistics office releases an estimate of its economic growth in the first quarter.
That Germany's Chancellor Angela Merkel, and France's President Nicolas Sarkozy are calling the shots in the attempted salvaging
of the eurozone economy — with Merkel the dominant of the duo — is not new news.
Not exact matches
The Commission, meanwhile, said Britain will continue to lag the
eurozone over the coming years, forecasting growth
of only 1.5 percent this year and 1.2 percent next, with the
economy hobbled by Brexit uncertainty.
Italy is the
eurozone's third largest
economy, and its debt - to - GDP ratio
of 133 % is the second largest in the currency union, after Greece.
The
eurozone's recovery from the sovereign debt crisis has been about improving situations in the economic bloc's peripheral
economies like Italy and Portugal, and this new batch
of uncertainty in Portugal's financial sector is not sitting well with investors.
Some
of that is for good reason — the
eurozone's recovery is still extremely modest, China's growth is slowing (along with most other emerging markets) and investors are uncertain over the ability
of the halfway - recovered US and UK
economies to sustain higher central bank interest rates.
But unlike the 2011 rout, sparked by the
eurozone debt crisis, the sudden collapse
of global equities markets that began last week is all about China — which makes it all the more unnerving since few have a good grasp on how the world's most important emerging
economy actually works.
Speaking to an Economic Club
of Canada audience in Toronto on June 29, the Nobel laureate admitted that the outcome
of the current situation involving a sluggish U.S.
economy and a wobbly
Eurozone was difficult to foresee, save for Greece.
The most widespread opinion is that the European Central Bank is going to announce a new round
of bond - buying next week to try to stimulate the
Eurozone economy, which will further depress the value
of the euro and make the franc yet more attractive.
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.
It was growth in Germany and France in the second quarter
of the year that propelled the
eurozone above the zero - growth mark, and German and French consumers, in turn, gave their respective
economies a considerable lift.
German sovereign paper is seen a proxy for the
eurozone's
economy and the viability
of the economic bloc.
The so - called policies
of fiscal stabilization dictated by the Bundestag will only make the situation in the
eurozone's fourth - largest
economy worse, not better.
«Our decision to upgrade Europe at the end
of last year was driven by our belief that we would see a solid upturn in the
eurozone economy, earnings and investment flows into a region that was unloved and underowned,» says Sheets.
His comments, made to the U.K.'s Daily Mail, came on the same day as a «raft
of dismal economic news from around the world, with manufacturing output falling in Britain and Europe, unemployment jumping in the
eurozone and America, and fast - emerging
economies such as Brazil and China showing signs
of running out
of steam.»
Goldberg says bold moves by the European Central Bank have mitigated the threat
of a cascade
of major bank failures, but an anemic
Eurozone economy would be bad news for American export - driven companies.
The step represented a significant escalation
of the E.C.B.'s efforts to get banks to lend more money, apply a jolt to the
eurozone economy and head off the threat
of a destructive decline in prices known as deflation.
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.
The European Central Bank sometimes appears to be the sole
eurozone institution seeking to restore the
economy, in the absence
of government spending stimulus.
Fresh purchasing manager's index (PMI) readings for the month
of March were also released, showing continued manufacturing sector expansion in the world's largest
economies, including the U.S., China and the
eurozone.
Looking forward, it is a given that a lot needs to go right in the
eurozone, the United States, China, and Japan, which account for nearly two - thirds
of the world's $ 72 trillion
economy.
Latvia's Road to Serfdom By Prof. Michael Hudson and and Prof. Jeff Sommers While most
of the world's press focuses on Greece (and also Spain, Ireland and Portugal) as the most troubled euro - areas, the much more severe, more devastating and downright deadly crisis in the post-Soviet
economies scheduled to join the
Eurozone somehow has escaped widespread notice.
Implementing (another nascent trend) better economic policy in key emerging
economies (China, India) as well as key developed
economies (
eurozone, Japan) with at least the possibility
of future breakthroughs in U.S. economic policy (immigration, oil exports, trade promotion authority).
Over the past five years, the
economy has been through a number
of shocks, including the
eurozone crisis, the fiscal cliff, China's surprise currency devaluation in the summer
of 2015, and the shale oil bust.
Of the eurozone's four large national economies, only Italy bucked the trend, recording a 1.1 % rise in output, while Germany and France recorded declines of a similar magnitude and Spain was fla
Of the
eurozone's four large national
economies, only Italy bucked the trend, recording a 1.1 % rise in output, while Germany and France recorded declines
of a similar magnitude and Spain was fla
of a similar magnitude and Spain was flat.
Whether that benefit will be enough to drive the ECB's overarching goal
of firming up the
eurozone's flaccid
economy is another question.
European Central Bank head Mario Draghi says the
eurozone economy still needs abundant stimulus to raise inflation to more normal levels even in the midst
of a strengthening recovery.
It is no coincidence that the two main areas which are experiencing negative interest rates, sub-par growth and near - deflation — i.e. Japan and the
Eurozone (plus the three euro - linked
economies of Sweden, Denmark and Switzerland)-- are also the
economies where the major central banks have implemented flawed versions
of QE.
By contrast, the
Eurozone and Japan are still in the midst
of extended programmes
of quantitative easing (QE) intended mainly to keep interest rates low along the length
of the yield curve (rather than directly to boost the rates
of growth
of money and purchasing power), and hence to stimulate the two
economies.
Positives touched most aspects
of the
economy, including some powerful improvements to America's competitiveness which probably explain why the U.S. has done pretty well in 2012 in spite
of the
Eurozone mess, China's slowdown and the fiscal cliff episode.
These are the primary explanations for sub-par growth, near - deflationary conditions, and, most recently, negative interest rates in Japan and the
Eurozone (together with the euro - linked
economies of Denmark, Sweden and Switzerland).
Earlier this week, it was reported that the 19 - member
eurozone economy expanded by 2.5 % in 2017, the fastest rate since 2007, and ahead
of the 2.3 % expansion the U.S. saw last year.
The bloc faces risks from Trump's protectionist trade policies and U.S.
economy overheating, official says
BRUSSELS — The European Union unveiled an upbeat economic outlook for the eurozone Thursday, but warned of rising risks from President Donald Trump's protectionist trade policies and of the U.S....
Its movements are determined by the
economy of the Uk and that
of the
Eurozone.
Draghi has long insisted the bank would continue to take what it feels is appropriate action to get the
eurozone economy on track, and he reinforced that message most recently in August at the Federal Reserve Bank
of Kansas City - sponsored economic conference in Jackson Hole, Wyoming.
The data released on Thursday showed that the
Eurozone's largest
economy is beginning to feel the strain
of the debt crisis.
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.
On Monday, finance ministers in the
Eurozone also talked about the possibility
of giving Greece a further two years to fix the
economy.
I think that we can expect that to continue in the absence
of any major policy change, so I think the
Eurozone in aggregate will continue to be a 2 % growth
economy.
In our view, the ECB needs to consider its approach to QE, not least because
of the increasing similarities between the trajectories
of the
eurozone and US
economies.
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.
Nevertheless, we think the ECB is likely to wait for far more compelling evidence that the
eurozone economy is generating appropriate and sustainable levels
of price increases before contemplating a change
of stance.
Nevertheless, with the ECB's own inflation forecast for 2019 still only at 1.7 %, our sense is that ECB President Draghi is likely to wait for far more compelling evidence that the
eurozone economy is generating appropriate and sustainable levels
of price increases before contemplating a change
of stance.
I think what shook markets across the globe was not the size
of Greece's
economy or financial system, but more the prospect
of a Greek exit from the
eurozone, which would have put a big question mark over the irreversibility
of the entire euro system.
The central bank has launched a series
of stimulus measures to help the
economy of the 19 - nation
eurozone and bring inflation to a healthier level.
In our view, a favorable combination
of four factors should help drive the
eurozone economy much higher: