In many of our latest articles, we have been discussing how the Coronavirus might impact both the Chinese and the global economy. We have also discussed how slow is the growth of the economy of many rich countries. Today, we do not bring good news. Actually, it is not the case that the Eurozone economy is also shrinking. However, it is barely growing at all. In the final quarter of last year, the economic growth in the region was said to be of 0.1% during the three months to the end of December 2019.
In case you do not know what the Eurozone is, we are going to explain that to you. The Eurozone is an international organization composed of 19 European Union countries that use the Euro as their currency. Many of them are included in the set of the richest countries in the world, such as Germany and France. Thus, when we talk about economic growth, we are considering how all of these nations have been developing in 2019. Below, you will understand why the organization is not growing as strong as it could be.
Understand the reasons for the slow growth of the Eurozone economy. (Source: European CEO)
Eurozone economy is growing, but not that much
One of the reasons for the slow growth is that the countries that compose the Eurozone economy did not have the same economic development. Actually, while some of them were growing, some were shrinking. France and Italy, two of the eurozone’s largest economies, had their economy shrunk by 0.1% and 0.3%, respectively. Besides, some of their greatest economic power, like Germany and Spain, did not show impressive growth. While in Germany growth was about 0.2%, it was actually Spain the strongest economy of the group.
However, not everything is bad. If we consider the jobs market, the are was in better shape. During a period of many Europeans and immigrants without a job, we observed a decrease in the number of people unemployed. It fell down by 34,000 people.
Taking everything into consideration, we can say that the relative weakness of the Eurozone economy is due to a couple of things. First, we must consider that many countries had slow growth. On the other hand, some of the Eurozone countries also experienced a decrease in their numbers. In order to keep up with the news on the global economy and other articles related to finances, do not forget to check our other posts!