{"id":44900,"date":"2012-02-15T12:30:12","date_gmt":"2012-02-15T17:30:12","guid":{"rendered":"http:\/\/media.lclark.edu\/content\/hart-landsberg\/2012\/02\/10\/big-trouble-brewing-in-europe\/"},"modified":"2012-02-18T17:19:49","modified_gmt":"2012-02-18T22:19:49","slug":"big-trouble-brewing-in-europe","status":"publish","type":"post","link":"https:\/\/thesocietypages.org\/socimages\/2012\/02\/15\/big-trouble-brewing-in-europe\/","title":{"rendered":"Big Trouble Brewing In Europe"},"content":{"rendered":"

Cross-posted at Reports from the Economic Front<\/a>.<\/em><\/p>\n

There is big trouble brewing in Europe.\u00a0 John Ross, in his blog Key Trends in the World Economy<\/em>, highlights<\/a> this brewing crisis in a series of charts, some of which I repost below.<\/p>\n

This first chart shows the extent of the recovery from the recent economic crisis in the U.S., the EU, and Japan.\u00a0 While the U.S. GDP has finally regained its past business cycle peak, the same cannot be said for\u00a0Europe (or Japan).\u00a0 As of\u00a0the 3rd quarter 2011, EU GDP was still 1.7% below its previous business cycle peak.\u00a0 The Eurozone was 1.9% below.<\/p>\n

Recent\u00a0GDP estimates\u00a0for the 4th quarter show\u00a0European GDP once again contracting, which strongly suggests that the region is headed\u00a0back into recession without having regained its\u00a0previous\u00a0business cycle peak.\u00a0 This development implies that Europe faces serious stagnationist pressures.<\/p>\n

\"gdp1.jpg\"<\/a><\/p>\n

This chart looks at the growth record for the 5 largest European economies.\u00a0 Germany has regained\u00a0its previous GDP peak.\u00a0 France is making progress toward that end.\u00a0 These two countries account for 36.2% of European GDP.\u00a0 However, things are quite different for the\u00a0UK, Italy, and Spain.\u00a0 These three countries\u00a0account for 34.7% of European GDP and not only do they each remain far below their respective previous GDP peaks, their economies are once again heading downward.<\/p>\n

\"gdp2.jpg\"<\/a><\/p>\n

The third chart highlights the economic performance of the three countries which have received the most media attention\u00a0because of fears that their governments will be unable to repay their respective debts.\u00a0 They are clearly in trouble, adding to the downward pressure on European GDP.\u00a0 However, despite all the attention paid to them, their combined economies are only one-eighth the size of\u00a0the combined economies of the UK, Italy and Spain.<\/p>\n

\"gdp3.jpg\"<\/a><\/p>\n

The next two charts highlight the fact that\u00a0economic trends are also dire throughout much of Eastern Europe.<\/p>\n

\"gdp4.jpg\"<\/a><\/p>\n

\"gdp5.jpg\"<\/a><\/p>\n

The take-away is that European economic problems are not limited to a few smaller countries.\u00a0 Some of the largest are also performing poorly and apparently headed back into recession without ever having regained their past business cycle peaks.\u00a0 It is hard to see Europe escaping recession.\u00a0 And it is hard to see the U.S., Asia, and Africa escaping the consequences.<\/p>\n","protected":false},"excerpt":{"rendered":"

There is big trouble brewing in Europe.\u00a0 John Ross, in his blog Key Trends in the World Economy, highlights this brewing crisis in a series of charts, some of which I repost below.\u00a0
\nChart 1 (below) shows the extent of the recovery from the recent economic crisis in the U.S., the EU, and Japan.\u00a0 While the […]<\/p>\n","protected":false},"author":1853,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[36,12498,1814,8045,8104,1776,1777,4128,4127,1817,1819,1821,2117,8105,1795,1798,8088,1802,12497,3920],"class_list":["post-44900","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-economics","tag-economics-great-recession","tag-nation-bulgaria","tag-nation-croatia","tag-nation-estonia","tag-nation-france","tag-nation-germany","tag-nation-greece","tag-nation-hungary","tag-nation-ireland","tag-nation-italy","tag-nation-japan","tag-nation-latvia","tag-nation-lithuania","tag-nation-portugal","tag-nation-romania","tag-nation-slovenia","tag-nation-spain","tag-nation-united-kingdom","tag-nation-united-states"],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/posts\/44900","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/users\/1853"}],"replies":[{"embeddable":true,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/comments?post=44900"}],"version-history":[{"count":5,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/posts\/44900\/revisions"}],"predecessor-version":[{"id":45054,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/posts\/44900\/revisions\/45054"}],"wp:attachment":[{"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/media?parent=44900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/categories?post=44900"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thesocietypages.org\/socimages\/wp-json\/wp\/v2\/tags?post=44900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}