In 2023, the European Union (EU) released economic data for the last quarter of 2023 and it showed an impressive increase in GDP for Italy compared to Germany. This growth trend is part of a larger pattern where Southern European countries like Italy, Portugal, Greece, and Spain have been able to outperform larger economies like Germany, France, and the U.K. in terms of economic growth.
Despite stagnant growth and recessions experienced by these larger economies in recent years, Southern European countries have surpassed them with their strong economic performance. The shift marks a significant change from the economic struggles faced by Mediterranean countries in the 2010s following the 2008 financial crisis.
In 2023, the GDP across the entire EU grew at an average rate of 0.4 percent, with Southern European countries like Greece, Spain, and Portugal posting growth rates exceeding 2 percent. Italy and Spain have become key contributors to the EU’s modest growth. This turnaround from the economic struggles faced by Mediterranean countries in the 2010s is remarkable as countries like Spain, Portugal, and Italy were on the brink of bankruptcy.
The strong economic performance of Southern European countries can be attributed to developments in various sectors such as energy and tourism. These developments were influenced by global events such as the war in Ukraine and COVID-19 pandemic which affected energy prices across Europe. Countries that had diversified their energy sources away from Russian gas were less affected by price hikes compared to those that relied heavily on Russian gas like Germany and France.
Spain has emerged as a success story within Europe due to its strategic partnership with Algeria through companies like Repsol that reduced its dependence on Russian energy. This move has enabled Southern European countries to weather global economic challenges while emerging as thriving economies within Europe.
Overall, this shift in power dynamics within Europe highlights how resilient some countries can be even during challenging times while also underscoring how interconnected all economies are globally through trade partnerships and global events that impact international markets.
In conclusion, it’s worth noting that despite lingering concerns about Brexit’s impact on UK economy stability or ongoing trade tensions between US and China; Southern European countries have managed to grow their economies at impressive rates while outperforming some of their larger counterparts within EU boundaries.
As we look ahead into future quarters or years; it will be interesting to see if this trend continues or if there will be shifts in economic performance between different regions globally or within individual country borders.