Economic Comment Dutch version
Gradually the eurozone is overcoming the crisis. Time to look back and to take stock. What caused the crisis? How did the eurozone respond to the crisis? And how is the economic situation in the crisis countries right now?
Economic Comment
The severe economic problems Cyprus faced in 2012-2013 were to large extent a private sector debt (banking) problem. A central element of the crisis response in Cyprus was the concept of bail-in.
Economic Comment
The build-up of large private sector imbalances related to a housing boom and the financial sector were the prime cause of the crisis. Ireland has successfully reformed its banking sector and economic performance is strong, but challenges remain.
Economic Comment
Weak private and public finances prior to the crisis are to blame for the severity of the recession and the public debt crisis. Harsh measures triggered a process of sharp economic contraction. The outlook remains bleak and unemployment and debt sky-high.
Economic Comment
Both high private and public sector debt prior to the crisis are to blame for the country’s deep recession and public debt crisis. It remains to be seen whether Portugal’s low growth problem has been addressed, with unemployment and indebtedness still very high.
Economic Comment
In Spain, the build-up of large private sector imbalances related to a housing boom was the prime cause of the crisis. Spain has rather successfully reformed its banks and economy, but the crisis leaves scars in the form of high unemployment and public debt.
Economic Comment
Public sector debt was already very high and economic growth very weak in the years prior to the crisis. Private sector debt was and still is relatively low. Despite recent structural reforms, the economic outlook remains rather weak and unemployment and public debt high.
Economic Comment Dutch version
In the past months, the tensions between Greece and its creditors have grown and so has the risk of a Greek exit from the eurozone. It is only recently that the Greek government seems willing to give in to the tough demands of Europe in return for financial support. Yet it is far from clear when the crisis will be defused and what exactly this will entail.
Economic Comment Dutch version
After the negotiations between Greece and the institutions were discontinued on Saturday, all eyes are on Greece. With no exposure of Eurozone banks and new mechanisms in place at the European aimed to prevent contagion we do not foresee major contagion events in the event of a Greek default.
Country Report
Italy’s economy shrank again in 2014, and is expected to only recover slowly. Political stability has improved a bit and the government’s reform agenda is promising. Some major reforms have already been achieved, but progress is and will remain slow.
Country Report
Strong institutions and policymaking support (potential) GDP growth, while the country’s small size and ageing pose challenges. Healthy balance sheets and a solid international creditor position reduce Singapore’s susceptibility to (global) shocks.