The European Economy has more than 731 million people in 48 countries with a GDP of $19.920 trillion, which amounts to nearly 30.2% of the world. Recent estimates though suggest that the economy grew by only 0.3% in the last quarter. Compare this with the growth of a developing country like China, which saw over 7.4% growth in 2014, and the difference becomes apparent.
The European Union has a number of issues to deal with, from unemployment problems to debt issues to the Ukraine conflict. Economic growth remains slow because of moving labor, high debts, and weak demographic structure. Most economies haven’t fully recovered from the economic crises that struck in 2008.
The European Union, however, has remained a good region for global trade. Now, a comprehensive plan seems to have been drawn up to overcome most of these challenges.
Europe – A Focus on Increasing Global Trade
After the fall of the European markets, the European Union discussed about the reintegration of European countries in global markets. Different projects have been streamlined to attain sustainable development with improved employment facilities.
After the last economic crises, there has been a move towards transparent rules and regulations in trade. Europe has started trading into global markets with modern transportation and communication facilities. Goods worth more than 500 million Euros are exported and imported by Europe every year. After 2012, Europe is considered to be the world’s largest exporter of goods and services. The European Union accounts for 16% of world imports and exports.
The Recovery of the European Economy
After 2013, the European Commission stated that there was a positive effect in the GDP growth with increase in investment and declining unemployment rates. While the European economy is picking up, the development rate still remains lower compared to countries like U.S. GDP saw a growth of 2.0% in 2014. By the end of 2014, EU saw a significant growth of investment in constructions. With the structural reforms, increase in national revenue was noticed in many countries. Money supply and circulation is increasing in most European economies. MED has helped consolidate the trend in the economy by boosting trade, higher exports, and increase in GDP rates amidst declining unemployment rates.
