The Global Financial Crisis’ Impact on the Eurozone: So Far, A Lost Decade
18 Pages Posted: 4 Mar 2019
Date Written: February 10, 2019
The Global Financial Crisis of 2007–2008 ranks among the biggest disruptions of the world economy in decades. The scope and severity of its impact are testified by the fact that 10 years after the crisis none of the world’s major economies – Japan, Brazil, USA, Eurozone, Russia, China – have managed to overcome the consequences completely. However, the degree to which the GFC’s impact has been neutralized varies considerably, and the comparison between the eurozone and the two other developed countries – Japan and USA, reveals the deeper economic problems in Europe. The most appropriate illustration is unemployment – by the fourth quarter of 2018 the unemployment rate in the eurozone was more that 3 times higher than Japan’s rate and more than 2 times higher than the U.S. rate.
Along with unemployment, this paper examines the GDP dynamics (incl. GDP per capita), budget deficit, and government debt in the eurozone. On the basis of the conducted analyses, the 10 years after 2007 can be defined as ‘the eurozone’s lost decade’.
Keywords: Global Financial Crisis, eurozone, euro area
JEL Classification: E24, E44, E58, G01, G21, H12, H62, H63
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