Since 2009, the Eurozone crisis has resulted in severe economic turmoil in the region. Analysts blame growing debts in European countries for triggering one of the worst economic crises of recent years. While more time is needed to improve the situation, certain trends are pointing to signs of improvement as illustrated by the following:
• Inflation has been steadily decreasing to a 5.5 year low.
• Small and medium enterprises (SMES) are now accounting for 2/3 of employment across Europe.
The pace of economic recovery is slow, but steady. Yet, the biggest concerns include employment opportunities and income generation. While there have been slight improvements in the economic health of the Eurozone, there is still a lot of work to be done to reach pre-2009 levels. Here are some of the specific trends that are impacting growth.
• The Eurozone unemployment rate is pegged at 11.2%, significantly higher than the rates in the U.S. (5.7%) and Japan (3.6%).
• 3.3 million Youth under the age of 25 are currently unemployed in the Eurozone.
Lending to Small Medium Enterprises
• Eurozone SMEs are paying interest rates on bank loans that are up to 3 times higher than German SMEs.
• 13% of SMEs are reporting that access to finance is their main problem.
• By 2030 the number of people of Retirement age will increase by 5 million.
• The number of people of working age is expected to decrease by 7 million in this time.
The study further highlights the following factors that will contribute to long term progress
• Credit and confidence will boost business investment.
• A lot of work is required to turn positive trends into sustainable upward growth.
• Improvements take time and will become more evident as long term trends are examined.
To learn more about the Eurozone crisis situation, take a look at the infographic below created by Boston University.
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