We should take a look at the period identified by the EU as the ‘Great Recession’ 2008 say through 2017. In general it is right to say that output has declined throughout this period across the developed world. However, when you take a more specific look you start to see comparisons which show Europe as the sick region of the world.
The American economy grew throughout this period by 13%. If you look at the rest of the world outside of Europe and you compartmentalise the ROW, UK and Canada then you have 21.2% (ROW), 8.5% (UK), Canada (14.4%) The Eurozone by only 2.2% with Germany by far the stellar performer at 7.8%, France 4.6%. Spain, Portugal, Italy and Greece were minus 1.1%, 4.1%, 7.4% and 27.3% Hence you start to see the divisions and animosity occurring as I mention in my previous blog. By Contrast Singapore a developed to all intense and purpose western developed economy grew at 40%.
The decline of Greece is startling as it is equivalent of 1930s US decline. How the Greeks have suffered during this period is quite appalling.
When you broaden this survey out and look at Switzerland 10.4% growth. Norway 9.4%.
Looking further out China during this period has grown 100%. In short creating another Italy and Germany combined. You don’t need to focus on this number in relation to China other than consider where the future really lays. The growth in Malaysia, Singapore, India even Indonesia these have all been stellar performers during this period.
It’s easy to look at individual countries within Europe such as Sweden or Denmark, Germany and dismiss the analogy the EU is in decline. This would be folly! The Euro was political and not an economic decision. Until the very structure of the Eurozone is cohesive it can not benefit all! Of course individual countries are against such a structure.