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Greece and the EU Economy Crucial to Health of World’s Economy

EU countries and peripheral countries. Photo courtesy Nightstallion and Wikimedia Commons
EU countries and peripheral countries. Photo courtesy Nightstallion and Wikimedia Commons

Taken as a single country, the US economy is still the world’s biggest, with China coming in a very close second. However, as a single entity, the countries comprising the European Union actually surpass the size of the US economy, making it a key player in the world’s marketplace.

One economist, Joseph P. Quinlan, the chief market strategist for US Trust, pointed out just how important the EU is to the rest of the world.

“In nominal U.S. dollar terms, the European Union (plus Norway, Switzerland, Iceland) accounted for 25.4% of world output in 2014 according to data from the International Monetary Fund.  That was greater than America’s share (22.5%) and well in excess of China’s—13.4%,” said Quinlan.

The EU consumer is also doing well. The EU and several periphery countries accounted for 28.5 percent of all consumer spending in 2014. Compare that figure with 26.6 percent spent by US consumers and 15.6 percent spent by the combined emerging economies of Russia, India, Brazil, and China. Spending like that attracts companies to the region.

“Gaining access to wealthy consumers is among the primary reasons that US companies venture overseas, and hence the continued attraction of Europe to US firms,” wrote Quinlan.

The conclusion for Quinlan, and his message to the rest of the world: Although Greece might not have a direct impact on the US or world economies, the impact Greece’s troubles have on the EU should be of great concern to the rest of the world.

Debt Crisis Continues to Assail Global Economy

Financial headlines continue their repetitive, three-year trend, stating once again that debt crisis turmoil and economic confusion have lowered Asian stocks on Monday. Benchmark oil fell to $102 a barrel, and though the dollar gained momentum opposite the euro, it lost value against the yen. The Nikkei also fell 1.4% to 9,502.95 as the yen… Continue Reading

EU Economic Outlook: Trevor Williams

Though the loose ends of the debt crisis and economic turmoil throughout Europe have yet to be tied up, some experts believe that the negative take on the situation is the leading cause of slow growth. “This month’s acceleration in confidence about U.K. economic prospects supports our view that concern about the euro-zone debt crisis… Continue Reading

When It’s All Just Greek to the Greeks

Troubled Times for Greek Finance; Not Happy Swiss The Greek economy is up the creek without a paddle.  As well, this is impacting the Swiss populace which is now sitting around watching this turmoil unfold.  The Greek parliament has just said yes for increased austerity in an effort to meet EU-IMF bailout terms.  This led… Continue Reading

Ireland and Financial Stability

Financial stability can trace back a long way, according to an article today in the Irish Times. Indeed, the September 2008 unilateral bank guarantee from Ireland was, according to EU commissioner Joaquin Alumnia, what “trigger[ed] subsequent EU-level actions to preserve Continent-wide financial stability.” Alumnia’s Criticisms Alumnia was addressing a group of bankers yesterday in Dublin… Continue Reading