Selected indicators on the economic impact of the crisis

From average annual growth of 2.9 percentage points (pp) during the 2005-08 period, the recession brought average EU28 annual GDP growth down to 0.1pp in the years 2009-12. The drop was also significant for other global players, with growth slowing down in all major economies. The debt to GDP ratio increased in all European Union Member States, leading to the revision of the Excessive Deficit Procedure. This is used to monitor those euro area countries which, as established by Article 126 of the Treaty on the Functioning of the European Union, either fail to keep their deficit below the 3% of GDP limit or allow their government debt to rise above 60% of GDP. In 2012 the European Stability Mechanism was set up as a primary support for debt sustainability. This paper looks at the impact of these financial developments on the real economy and their diverse effects on labour markets, consumer prices and industrial sectors across Member States.

Read the complete Spotlight here

This slideshow requires JavaScript.

Governments’ budget balance and investment

2012 GDP compared with 2007

GDP annualised quarterly change

Change in the external trade balance: 2013 compared with 2008

Employment change: 2012 compared with 2007

Net savings and disposable income: 2012-2008 Change in PPS per inhabitant

Debt to GDP ratio: How 2012 compares to 2007

Long-term interest rates: evolution between January 2008 and December 2013

Inflation and industrial production