BANCI | ENGLISH

PwC analysis: Eurozone peripheral economies are gaining competitiveness and capitalizing on higher tourist numbers

Autor: Bancherul.ro
2013-08-20 10:34

PwC press release: Europe’s crisis struck peripheral economies are slowly gaining back competitiveness and capitalizing on higher tourist numbers, shows a recent PwC analysis.

For the first summer in three years, there is not an apparent crisis brewing in the Eurozone. A number of factors have helped to reduce short term risks facing the peripherals including Quantative Easing and the European Central Bank’s (ECB) commitment to ‘do whatever is necessary’ using the bond buying programme. As a result, yields on peripheral government bonds are 2-3% lower than this time last year. However, that does not mean that the peripheral economies of Portugal, Italy, Ireland, Greece and Spain in particular, are out of danger yet.

A key aspect of restoring balance within the euro area involves peripheral economies regaining competitiveness. Labour costs have fallen by around 20-30% over the past 4 years. However, one-off factors like falling wages and rising unemployment account for most of the change. While costs have fallen, reforms to labour markets to boost wage flexibility have been lacking. This poses a risk that competitiveness will be eroded through the next growth cycle as labour markets recover in line with economic growth.

Falling costs have proved good news for tourism, a key industry for several peripheral economies. Receipts from tourism can make up almost 5% of GDP, and growth in tourism (as high as 23% since 2009 in Spain) provide a good news story.

Peripheral governments have made reasonable progress in reducing their deficits, albeit from a poor starting point. However, continued recession is working against them. PwC forecasts show the peripheral economies shrinking by 1% or more in 2013. This is aggravating debt problems through two channels. Total debt levels will continue to rise until deficits are closed, and at the same time debt/GDP levels increase as the economy shrinks further. Debt is also an issue for the private sector, and the banking system remains frail. An upcoming ECB asset quality review will hopefully remove some uncertainty over the health of many banks operating in the periphery.

The most visible area of pain continues to be the labour market, with unemployment continuing to rise, in some cases at twice the rate of the Eurozone average. In the short term, this represents a major drag on domestic demand and business and consumer confidence. Long term unemployment and the elevated levels of youth unemployment risk a scarring of the economy and productivity as skills are permanently lost.

While peripheral European economies are still highly stressed, the tail risks of defaults and exit have receded dramatically over the previous 12 months. Recent confidence indicators like the Purchasing Managers Index (PMI) suggest that the rate of contraction is slowing, and a stabilisation could come later in the year. Businesses which are looking to invest for the long term, and are willing to ride out further short term risks, could find themselves well positioned as these economies start to recover.

Notes to Editor

To download the full report, please go to http://www.pwc.co.uk/economic-services/global-economy-watch/peripheral-europe-summertime-but-the-living-is-not-easy.jhtml

Comentarii

Adauga un comentariu

Adauga un comentariu folosind contul de Facebook

Alte stiri din categoria: ENGLISH

Merger of Alpha Bank and UniCredit Bank Romania

Press Release: "Alpha Services and Holdings announces a strategic partnership with UniCredit in Romania Merger of Alpha Bank Romania and UniCredit Bank Romania and creation of third largest bank in Romania by total assets, with Alpha Bank retaining a detalii

National Bank of Romania (NBR) Board decisions on monetary policy

NBR Board decisions on monetary policy In its meeting of 4 April 2023, the Board of the National Bank of Romania decided: • to keep the monetary policy rate at 7.00 percent per annum; • to leave unchanged the lending (Lombard) facility rate at 8.00 percent per annum and the deposit facility rate at 6.00 percent per annum; • to keep the existing levels of minimum reserve requirement ratios on both leu- and foreign currency-denominated liabilities of credit institutions. The annual inflation rate went down to 15.52 percent in February 2023, from 16.37 percent in December 2022, relatively in line with forecasts. The decrease was mainly driven by the sizeable drop in the dynamics of fuel and detalii

ING posts 2022 net result of €3,674 million, dividend of €0.389 per share

ING press release: ING posts FY2022 net result of €3,674 million,
proposed final 2022 dividend of €0.389 per share

4Q2022 profit before tax of €1,711 million; CET1 ratio remains strong at 14.5%
•
Profit before tax up 29% on 4Q2021 and 24% on 3Q2022, mainly driven by higher income
•
Higher net interest income, as a further increase in liability margins helped offset TLTRO impact this quarter
•
Risk costs declined to 17 bps of average customer lending

Full-year 2022 net result of €3,674 million, supported by growing customer base and increase in lending and deposits
•
On a full-year basis, our primary customer base grew by 585,000 detalii

BT Financial Results as at 30 September 2022

BT Financial Results as at 30 September 2022 Banca Transilvania – sustained growth in customers and operations during the first nine months of the year "We continued our robust growth in the number of clients and transactions, with a dynamic well above the market average. We have been growing steadily and continued financing companies and individuals, despite the fact that the financial market is more fraught with uncertainty than ever and
the funding costs and capital requirements are additional factors driving the uncertainty in the economy. We remain committed to our objective - to be the main supporter of the economy and of the state for the development of Romania", states Mr. Ӧmer Tetik, Chief Executive detalii

Vezi toate stirile

21.11.2024

1 EUR = lei
1 USD = lei

Sursa BNR

Profil de Bancher

Laurentiu Mitrache, Presedinte Executiv
Bank Leumi

... vezi profil

Toate Profilele

Profil de Banca

EximBank

vezi detalii

Toate Bancile

Filmul Parking, un cliseu plictisitor

Toate stirile

ING Bank

Toate stirile

Ultimele Comentarii

LOAN OFFER
Buna ziua Aceasta pentru a informa publicul larg că oferim împrumuturi celor care au nevoie de ... detalii
!
Greu cu limba romana! Ce legatura are cuvantul "ecosistem" din limba romana cu sistemul de plati ... detalii
Bancnote vechi
Am 2 bancnote vechi:1-1000000lei;2-5000000lei Anul ... detalii
Bancnote vechi
Numar de ... detalii
Bancnote vechi
Am 3 bancnote vechi:1-1000000lei;1-5000lei;1-100000;mai multe bancnote cu eclipsa de ... detalii

Nume	*
E-mail	*
E-mail prieten	*
Mesaj
Cod validare	*
	Tastati codul din imagine (doar cifre)
	195.154.184.126