At last, the eurozone economy appears to be experiencing some kind of
recovery. GDP started growing again in the spring of 2013, following
seven quarters of decline, with domestic demand shrinking for even nine
consecutive quarters between 2011 and 2013. Today, it is conceivable
that within a year or so the eurozone might recoup its pre-crisis level
of GDP, perhaps marking the end of a “lost decade”.
But it is too soon to declare victory and become complacent. The eurozone remains fragile and the recovery uneven. Having primarily relied on export demand for its meagre growth since 2010, developments in China and elsewhere in the emerging world are posing an acute threat. More recently home-grown demand benefited from peculiar tailwinds that are
emporary in nature. It is unclear at this point whether these forces will merge into a stronger self-sustaining recovery, while the likelihood of renewed and spreading political instability along the way keeps rising. It seems unwise, in fact hazardous, not to have a plan B ready at hand should growth falter once again.
Read more: Euroland Has No Plan B: It Needs An Urgent Recovery Plan
But it is too soon to declare victory and become complacent. The eurozone remains fragile and the recovery uneven. Having primarily relied on export demand for its meagre growth since 2010, developments in China and elsewhere in the emerging world are posing an acute threat. More recently home-grown demand benefited from peculiar tailwinds that are
emporary in nature. It is unclear at this point whether these forces will merge into a stronger self-sustaining recovery, while the likelihood of renewed and spreading political instability along the way keeps rising. It seems unwise, in fact hazardous, not to have a plan B ready at hand should growth falter once again.
Read more: Euroland Has No Plan B: It Needs An Urgent Recovery Plan
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