Comparative Economic Report

EUROPE
Objectives
At the end of this lesson, the student should be able to:
a. Know the facts about Europe

b. Analyze Europe's trade relationships with other regions
and countries.
c. Study Europe's labor market, including employment rates,

unemployment rates, and wage levels.
d. Identify regional disparities in economic development in

European countries.
EUROPE
Europe is a continent, additionally acknowledged as a part of Eurasia, located totally in the
Northern Hemisphere and basically inside the Eastern Hemisphere. Comprising the western
most peninsulas of the continental landmass of Eurasia, it stocks the continental landmass of
Afro-Eurasia with both Asia and Africa. It is bordered via the Arctic Ocean to the north, the
Atlantic Ocean to the west, the Mediterranean Sea to the south and Asia to the east. Europe is
generally taken into consideration to be separated from Asia via the watershed of the Ural
Mountains, the Ural River, the Caspian Sea, the Greater Caucasus, the Black Sea and the
waterways of the Turkish Straits. Although a whole lot of this border is over land, Europe is
sort of always recognized as its own continent because of its extraordinary physical size and
the burden of its records and traditions.
FACTS ABOUT
EUROPE
·Total Population: 741 million people
·Number of Countries: 50
·Demonym: European
·Most spoken languages: English, German, Spanish,
Italian, Russian, French, Polish
·Largest city: Istanbul
VISION
·Life expectancy: 75 years (males) 82 years (females)
·Highest Mountain: Mount Elbrus in Russia – 5,642
meters above the sea (18,510ft)
·Land area: 10,180,000 km2 (3,930,000 sq mi)
·Largest Lake: Lake Ladoga
·Religion: The majority are Christians or non-
religious. There is a growing Muslim population as
well
IT WAS NAMED AFTER THE
PHOENICIAN PRINCESS
EUROPA
The Ancient Greeks divided the world into

three major units, Europe, Asia, and Libya.
There are several theories on how Europe
got its name, but one of the most popular
legends is the one where the Phoenician
Princess Europa was kidnapped by Zeus.
EUROPE HAS THE HIGHEST GDP
(INCOME PER PERSON)
Some of the richest countries in the world can be found in
Europe, such as Luxembourg, Switzerland, Norway, Austria, and
Iceland to name a few that has some of the highest GDP per
capita in the world. The reason for Europe having the highest
GDP per capita as a continent is since many countries have
strong economies, whereas the other continents have a large
share of poor countries.
Agrifarm Company Profile Page 09 www.reallygreatsite.com
EUROPEANS EAT 50% OF

ALL THE WORLD’S
CHOCOLATE
More than 50% of the total world production of

chocolate is sold and eaten by Europeans.
Switzerland has the highest consumption per
capita, second to Germany.
COUNTING EUROPEAN COUNTRIES IS
DIFFICULT
·If you ask someone how many countries there are in Europe, the
answers you get can vary from44 to as many as 64 depending on
how you count countries, and if countries that are not wholly
European should be included or not. For example, Russia, Turkey,
Azerbaijan, Kazakhstan, Georgia has a land area in both the
European and Asian continent, mostly on the Asian continent
though. And Cyprus and Armenia often count towards Europe even
though they are closer to Asia geographically. To make it even more
confusing, Cyprus is a member of the European Union. Then there
arenon-sovereign territories that could be counted as a country:
Guernsey, Jersey, Isle of Man, Gibraltar, Akrotiri and Dhekelia,
Faroe Islands, Åland, and Svalbard.50 countries are the most used
answer number though with additional 5 territories that have yet to
be fully recognized.
Economic Analysis
of Europe
Understanding Economic Trends and Indicators
Part 1
Introduction to
European
Economy
Part 1
Introduction to Overview of the European Union (EU) and
Eurozone
European
Economy • The European Union (EU) and the Eurozone are
integral components of European governance and
economic integration.
• The European Union (EU) is a unique economic

and political union that consists of 27 European
countries. It was established in the aftermath of
the Second World War through a series of treaties
with the aim of fostering economic cooperation
and maintaining peace among European nations.
https://op.europa.eu/webpub/com.
Part 1
Introduction to
European
• While the Eurozone, also known as the euro area,
Economy is a monetary union of 19 of the 27 European
Union (EU) member states which have adopted
the euro as their official currency. The main goal of
the Eurozone is to provide a stable currency for
these countries and to further integrate their
economies.
Part 1
Introduction to Importance of the European economy on a global
European scale
Economy • The European Union's economy plays a significant

role on a global scale. It is intricately connected
with the world, perhaps more so than any other
group of states. Even though the EU's share of
world trade has seen a slight decline in recent
years, it still remains at a high level. This strong
position in global trade is a key foundation for
growth, competitiveness, and employment within
Europe.
https://english.bdi.eu/topics/europe/global-europe
Part 1
Introduction to
European • The European Union's influence extends beyond
Economy just economics. Its political, social, and cultural
impacts are also felt worldwide. And as one of the
largest economies in the world, the decisions
made within the EU often have far-reaching effects
on global markets and policies.
https://english.bdi.eu/topics/europe/global-europe
Part 1
Brief historical context and recent economic
Introduction to developments.
European
• Historically, Europe has seen significant social and
Economy economic developments. The Metal Ages were
periods of discovery, invention, and exploitation of
various metals and metallurgical procedures. New
elements were introduced into the societies, which
played a role in their further development.
Europe's history is marked by numerous
technological, cultural, and social advancements
that have shaped the world.
https://www.britannica.com/topic/history-of-Europe
Part 1
Introduction to • As for recent economic developments, Europe's
European economy has been in a state of flux. The rhetoric
Economy has moved from a potential recession in the third
and fourth quarters of 2023, to a possible small
contraction. These developments are closely
monitored by economists and policymakers to
manage potential impacts and to ensure continued
growth and stability.
Part 1 • Overview of the economic significance of
Europe globally
Introduction to
European • Market Size: The • Trade Hub: Europe serves
European Union (EU) as a vital trade hub,
Economy represents one of the facilitating trade between
largest single markets in regions such as North
the world, with over 440 America, Asia, Africa, and
million consumers. This the Middle East. Ports such
large consumer base as Rotterdam, Hamburg,
makes Europe an attractive and Antwerp are among the
market for businesses busiest in the world,
across various industries. handling a significant
portion of global trade.
Part 1 • Overview of the economic significance of
Europe globally
Introduction to
European • Advanced Economy: Many • Financial Center: Europe
European countries have hosts several major
Economy highly developed economies financial centers, including
with sophisticated London, Frankfurt, and
infrastructure, skilled labor Paris. These cities are
forces, and advanced home to numerous banks,
technologies. Countries such investment firms, and stock
as Germany, France, and the exchanges, playing a
United Kingdom have thriving crucial role in global
industrial sectors and are finance and investment.
leaders in manufacturing,
automotive, aerospace,
pharmaceuticals, and other
industries.
Part 2
Gross
Domestic
Product (GDP)
Comparison
Part 2 Comparison of GDP among major European countries
Gross
Domestic
Product (GDP)
Comparison
Germany: Germany has the United Kingdom: The UK

largest economy in Europe and boasts one of the largest
ranks among the top economies in Europe. Its GDP
economies globally. Its GDP was approximately $3.1 trillion
stood at around $4.2 trillion USD in 2021, ranking second
USD as of 2021, making it the in Europe.
largest economy in Europe by a
considerable margin.
Gross
Domestic
Product (GDP)
Comparison
France: France is another Italy: Italy has a significant

major European economy, with economy in Europe, with a GDP
a GDP of around $2.8 trillion of about $2.2 trillion USD as of
USD as of 2021, placing it third 2021.
in Europe.
Gross
Domestic
Product (GDP)
Comparison
Spain: Spain is among the Netherlands: The Netherlands has

largest economies in Europe, a robust economy, with a GDP of
with a GDP of approximately around $1.1 trillion USD in 2021.
$1.6 trillion USD in 2021.
Gross
Domestic
Product (GDP)
Comparison
Switzerland: While not part of Sweden: Sweden has a sizable

the European Union, economy in Europe, with a GDP of
Switzerland is a major European around $0.6 trillion USD
economy, with a GDP of
approximately $0.7 trillion USD.
Gross
Domestic
Product (GDP)
Comparison
Poland: Poland is one of the Belgium: Belgium rounds out the

largest economies in Central list of major European economies,
and Eastern Europe, with a GDP with a GDP of about $0.5 trillion
of approximately $0.6 trillion USD.
USD.
Part 2 Growth rates and trends over the past decade in Europe
Gross • European Union GDP Growth Rate
Domestic GDP is the sum of gross value added by all resident

Product (GDP) producers in the economy plus any product taxes and minus
Comparison any subsidies not included in the value of the products.
European Union gdp growth rate for 2022 was 3.54%, a

1.93% decline from 2021.
11.14% increase from 2020.
European Union gdp growth rate for 2020 was -5.67%, a
https://www.macrotrends.net
Part 2 Growth rates and trends over the past decade in Europe
Gross
Domestic
Product (GDP)
Comparison
https://www.macrotrends.net
Part 3
Unemployment
Rates
Part 3
Unemployment rates comparison across
European countries as of 2023
Unemployment
Rates
https://www.statista.com
Part 3
Unemployment Unemployment rates comparison across
European countries
Rates
• Among European Union countries in October
2023, Spain had the highest unemployment rate at
12 percent, followed by Greece at 9.6 percent. By
contrast, Malta has the lowest unemployment rate
in Europe, at 2.5 percent. The overall rate of
unemployment in the European Union was six
percent in the same month - a historical low-point
for unemployment in the EU, which had been at
over 10 percent for much of the 2010s.
Germany
Unemployment: Germany's seasonally adjusted jobless rate held steady
for a third consecutive period at 5.8% in January 2024, remaining at its
highest level since June 2021 and coming in slightly below market
forecasts of 5.9%. The number of unemployed individuals fell by 2 thousand to
2.694 million, ending an 11-month period of increasing unemployment.
Additionally, there was a notable year-on-year surge of 182 thousand in the count
of unemployed individuals. Regional disparities persist, with Bremen (10.9%) and
Berlin (9.5%) registering the highest unemployment rates, while Bayern (3.5%)
and Baden-Württemberg (4.1%) maintain the lowest rates. "Employment and
demand for labor are constant, meaning that the labor is stable at the start of the
year despite the ongoing economic weakness," said Andrea Nahles, chairwoman
of the Federal Employment Agency.
Poverty
Although Germany is one of the richest countries in the world,
signs of increasing poverty are becoming increasingly visible
across the country. Homeless people sleeping rough, mothers
forgoing meals to feed their children, and pensioners looking for
discarded bottles to trade for the deposit. According to the
Paritätische Wohlfahrtsverband, Germany's umbrella organization for
welfare organizations, 13.8 million Germans either live in poverty or are
at risk of slipping below the poverty line. The German government also
voices its concerns about the growing gap between rich and poor.
Italy
Unemployment: Unemployment Rate dropped to 7.46% in Nov 2023, from the previously reported
figure of 7.71% in Oct 2023. Italy Unemployment Rate is updated monthly, available from Jan 1983 to
Nov 2023, with an average rate of 9.20%. The data reached an all-time high of 13.24% in Nov 2014
and a record low of 5.89% in Apr 2007. Italy is among the European Union countries with the highest
number of unemployed inhabitants. The Italian unemployment rate is 8.2 percent. This figure has
been decreasing steadily, registering the lowest rate of the last decade in 2022.
Poverty: There are now over 5.6 million Italians who cannot afford the cost of essentials like
food, shelter, education, and healthcare, according to a recent report by ISTAT. The number of
Italians living in “absolute poverty” has risen dramatically over the past 10 years, according to a new
report published by the country’s national statistics institute, ISTAT. Nearly 1 in 12 Italians lived in
absolute poverty last year, meaning that 5.67 million individuals and 2.18 million families had an
income below a level that would ensure they and their family meet basic needs of life including food,
shelter, education, and healthcare.
Part 3 Comparative analysis of unemployment rates
across European countries.
Unemployment
Rates Northern European Countries: Southern European Countries:
Countries like Germany, the Southern European countries
Netherlands, Austria, and such as Greece, Spain, Italy, and
Denmark typically have lower Portugal have historically faced
unemployment rates compared to higher unemployment rates,
the European average. These particularly following the global
countries often benefit from strong financial crisis of 2008. These
economies, well-developed labor nations grapple with structural
markets, and robust social welfare issues, including rigid labor
systems. market regulations, high youth
unemployment, and limited job
creation.
Part 3 Comparative analysis of unemployment rates
across European countries.
Unemployment
Rates Eastern European Countries: Scandinavian Countries:
Many Eastern European countries Countries like Sweden and
have experienced significant Norway typically maintain
economic transformations since relatively low unemployment
the collapse of communism. While rates due to their diversified
some countries like Poland and economies, active labor market
the Czech Republic have policies, and emphasis on
managed to reduce unemployment education and training. These
rates and attract foreign nations prioritize social inclusion
investment, others such as and provide robust support
Bulgaria and Romania still struggle systems for job seekers,
with higher unemployment, contributing to lower
particularly in rural areas where unemployment levels.
job opportunities are limited.
Part 4
Foreign Direct
Investment
(FDI)
Part 4 Definition of FDI and its role in economic
Foreign Direct development.
Investment • Foreign Direct Investment (FDI) refers to substantial,
(FDI): lasting investments made by a company or government
into a foreign concer. FDI investors typically take
controlling positions in domestic firms.
• FDI plays a crucial part. Despite globalization, the

essential role of FDI in economic development has not
changed. It assists in development through various
mechanisms and dynamics, which can lead to the growth
and improvement of the economy in which the investment
is made.
https://www.investopedia.com
Part 4 FDI inflows across European nations
Foreign Direct
• Foreign Direct Investment (FDI) inflows in European
Investment nations experienced fluctuations, as per UNCTAD's World
(FDI): Investment Report 2023. While global FDI declined by
12% in 2022 to $1.3 trillion, third-quarter 2023 inflows
more than doubled compared to Q2, with some European
countries reversing negative trends. Nevertheless, FDI
flows to OECD countries remained 25% below the same
period in 2022. In 2021, the EU directed significant
outward FDI flows, notably €84.7 billion to the United
States, followed by €49.2 billion to the United Kingdom
and €28.7 billion to Singapore.
https://unctad.org/data-visualization
Part 4 FDI inflows comparison across European nation
Foreign Direct
Investment
(FDI) Germany: Germany
United Kingdom: In
2020, the UK attracted received FDI inflows of
FDI inflows of around $41 billion USD in
approximately $60 billion 2020.
USD.
France: France attracted Netherlands: In 2020, the

FDI inflows totaling Netherlands received FDI
approximately $44 billion inflows of about $73 billion
USD in 2020. USD.
https://www.oecd.org
Foreign Direct
Investment
(FDI)
Switzerland: Switzerland Spain: Spain received
attracted FDI inflows FDI inflows of around $27
totaling approximately $22 billion USD in 2020.
billion USD in 2020.
Italy: In 2020, Italy Poland: Poland received

attracted FDI inflows FDI inflows of about $13
totaling approximately $23 billion USD in 2020.
billion USD.
Foreign Direct
Investment
(FDI)
Sweden: Sweden
Ireland: In 2020, Ireland
attracted FDI inflows
received FDI inflows of
totaling approximately $26
around $17 billion USD.
billion USD in 2020.
Part 5
Poorest and
Richest countries
in Europe
Part 5 Comparison of the poorest countries and richest
Poorest and countries in Europe by GDP per capita
Richest
countries in
Europe
Part 5 Comparison of the poorest countries and richest
countries in Europe by GDP per capita
Poorest and Top 10 Richest Countries in Europe by total 2020 GDP (current US$ -
Richest IMF)
countries in
Europe
Part 6
Trade and
Export Trends
Part 6 Analysis of trade dynamics within Europe and
Trade and globally
Export Trends • Intra-European Trade: The • Global Trade: Europe is a
European Union (EU) major player in global trade,
represents one of the most with significant exports and
integrated economic regions imports to and from regions
globally, characterized by a worldwide. European
high level of intra-regional countries trade a wide range
trade. Member states of goods and services,
benefit from the elimination including manufactured
of tariffs and trade barriers, goods, machinery,
fostering the free movement automobiles,
of goods, services, capital, pharmaceuticals, and
and labor. financial services.
Part 6 Analysis of trade dynamics within Europe and
Trade and globally
Export Trends • Trade Agreements: • Supply Chains and Logistics:
Europe has established European countries are deeply
numerous trade integrated into global supply chains,
agreements with with complex networks of
countries and regions production, distribution, and
outside the EU, such as logistics spanning multiple
the European Free Trade continents. Efficient transportation
Association (EFTA), the infrastructure, including ports,
European Economic Area railways, and highways, facilitates
(EEA), and bilateral the movement of goods within
agreements with various Europe and to other regions around
countries. the world.
Part 7
Fiscal Policies
and
Government
Debt
Part 7 Comparative analysis of fiscal policies among
Fiscal Policies European countries
and 1. Austerity vs. Stimulus: Some nations, particularly those in
Government the Eurozone, pursued austerity measures characterized by
spending cuts and tax increases to reduce deficits and debt
Debt levels. Others opted for stimulus policies, leveraging fiscal
expansion through increased government spending and tax
cuts to stimulate economic growth and employment.
2. Debt and Deficit Management: European countries employ

different strategies to manage public debt and deficits. Nations
like Germany prioritize fiscal discipline, maintaining strict debt
limits and balanced budgets. In contrast, countries like Italy and
Greece face challenges associated with high public debt levels,
requiring efforts to stabilize finances through structural reforms
and debt restructuring.
https://www.econstor.eu
Part 7 Comparative analysis of fiscal policies among
Fiscal Policies European countries
and 3. Taxation Policies: Taxation policies vary widely across
Government European countries, reflecting diverse priorities and social
welfare systems. Nordic countries like Sweden and Denmark
Debt impose high taxes to fund extensive social programs, while
countries like Ireland and Switzerland offer favorable tax
regimes to attract foreign investment. Tax reforms aimed at
promoting fairness, efficiency, and sustainability are common
themes across Europe
4. European Union Policies: European Union (EU) member

states navigate fiscal policies within the framework of EU
regulations and directives. The Stability and Growth Pact sets
fiscal rules aimed at ensuring fiscal discipline and stability within
the Eurozone. EU cohesion policies aim to reduce regional
disparities and promote convergence through targeted
investments and development programs
https://www.econstor.eu
Part 7 Government debt levels and sustainability
Fiscal Policies Government debt levels
and 1. High Debt Countries: Several European countries have
historically high levels of government debt relative to GDP.
Government Countries like Italy, Greece, Portugal, and Belgium have struggled
Debt with high debt burdens, often exceeding 100% of GDP. These
countries face challenges in achieving fiscal sustainability and
reducing debt-to-GDP ratios due to factors such as slow economic
growth, demographic trends, and rigidities in public finances.
2. Moderate Debt Countries: Other European countries maintain

more moderate levels of government debt. Countries like Germany,
the Netherlands, Sweden, and Austria have maintained relatively
lower debt-to-GDP ratios, typically below the 60% threshold
recommended by the European Union's Stability and Growth Pact.
These countries prioritize fiscal discipline, sound budgetary policies,
and economic reforms to ensure debt sustainability and maintain
investor confidence.
https://economy-finance.ec.europa.eu
Part 7 Government debt levels and sustainability
Fiscal Policies Sustainability:

1. Economic Sustainability: European countries focus on
and promoting inclusive growth, reducing income inequality, and
creating opportunities for all citizens through investments in
Government education, skills development, and job creation. Sustainable
Debt economic policies also emphasize financial stability, sound
macroeconomic management, and responsible fiscal policies to
avoid excessive debt accumulation and financial crises.
2. Sustainable Development Goals (SDGs): European countries

align their sustainability efforts with the United Nations Sustainable
Development Goals (SDGs), which provide a comprehensive
framework for addressing global challenges, including poverty,
hunger, health, education, gender equality, clean water, affordable
energy, climate action, and responsible consumption and
production.
Part 7
Fiscal Policies
and 3. Governance and Institutional Sustainability: Transparent,
Government accountable, and participatory governance mechanisms strengthen
democracy, uphold the rule of law, and safeguard human rights.
Debt European institutions such as the European Union (EU), European
Central Bank (ECB), and European Court of Justice (ECJ) play
crucial roles in promoting cooperation, integration, and adherence
to common values and standards among member states.
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EUROPE

a. Know the facts about Europe

c. Study Europe's labor market, including employment rates,

d. Identify regional disparities in economic development in

The Ancient Greeks divided the world into

EUROPEANS EAT 50% OF

More than 50% of the total world production of

• The European Union (EU) is a unique economic

Economy • The European Union's economy plays a significant

Germany: Germany has the United Kingdom: The UK

France: France is another Italy: Italy has a significant

Spain: Spain is among the Netherlands: The Netherlands has

Switzerland: While not part of Sweden: Sweden has a sizable

Poland: Poland is one of the Belgium: Belgium rounds out the

Gross • European Union GDP Growth Rate

Domestic GDP is the sum of gross value added by all resident

European Union gdp growth rate for 2022 was 3.54%, a

• FDI plays a crucial part. Despite globalization, the

France: France attracted Netherlands: In 2020, the

Italy: In 2020, Italy Poland: Poland received

2. Debt and Deficit Management: European countries employ

4. European Union Policies: European Union (EU) member

2. Moderate Debt Countries: Other European countries maintain

Fiscal Policies Sustainability:

2. Sustainable Development Goals (SDGs): European countries

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