An unusual way out of the EU crisis: “PIGS” leads growth and the northern partners stagnate

The economic scenario in the European Union (EU) has turned around. In the current exit from the twin crisis of pandemic and inflation, the northern partners are the burden, while the southern countries are the “engine” of growth. After the bursting of the real estate bubble in 2008, the name “PIIGS” (acronym for pigs in English and combining Portugal, Italy, Ireland, Greece and Spain) is now only a bad memory. “Pigs” have recovered more intensively since 2020, mainly due to the greater weight of the service sector (and tourism in particular) and the lower impact of price increases, especially energy prices (critical, for example, for Germany’s large industry). .

on the same TuesdayMarch industrial activity PMIs confirmed growth forecasts for the whole of 2024 and pointed to the biggest gains in Greece, Spain and Italy at the start of the year. PMIs are surveys of companies that serve to predict the behavior of various sectors. Above 50 points, they indicate expansion. Below this reference they denote compression.

Source: El Diario

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