Economy of the European Union

Main article: European Union

Long-term problems of the EU economy

Long-term limiting factors in the EU economies at the end of 2024:

• An extremely high fiscal burden on the economy, which impedes the development of high-risk projects, especially in the segment of technological startups, where there is a high share of "business mortality."

• A high level of regulatory restrictions and bureaucracy, where following the EU's multi-volume protocols requires a staff of lawyers, huge resources and time for coordination, adaptation, implementation.

• Market fragmentation, when uneven technological, financial, economic and social development of countries is unified into a single European ecosystem (taking into account a single monetary policy), which makes it difficult to find the most adaptive national development formula (which is good for Germany and France can be disastrous for Eastern European countries).

• Demographic restrictions that have been traditional for Europe for several decades. Over time, the problems have become more aggravated, which is compensated by the migration influx, leading to unevenly socio-cultural integration and related problems entering the political track.

• High energy dependence, which was from the very beginning of the Eurozone, but aggravated as part of the most powerful transformation of energy balances and supplies after the severance of ties with Russia.

Cultural, educational aspects, political instability and many other factors can be added here, but the most important are still the first five.

GDP

Main article: EU GDP

Financial system

Non-financial debt

Non-financial debt consists of credit instruments issued by government agencies, households and businesses that are not included in the financial sector.

National debt

2022: The national debt of the YeS-27 countries grew to 13.2 trillion euros or 85% of GDP

The public debt of the YeS-27 countries increased to 13.2 trillion euros (85.1% of GDP) for Q3 2022 compared to 13.1 trillion (86.4% of GDP) a quarter earlier and 12.8 trillion in Q3 2021 (89.7% of GDP).

Over the year, the increase in debt is only 418 billion euros, which is comparable to the accumulated budget deficit (395 billion euros) for 12 months.

Almost all debt is concentrated in the Eurozone countries (12.2 trillion), as well as the growth of borrowing for the year - 400 billion euros, but in the Eurozone the debt burden is slightly higher than the YeS-27 countries (93%), but decreases in relation to Q3 2021 (97.3%).

In all large countries without exception, the debt burden has decreased. There are three reasons:

• A low comparison base for 2021, when GDP did not regain its potential after a strangled economy with protracted lockdowns that lasted until mid-2021, unlike the United States, which almost all measures were removed at the beginning of Q3 2020.

• Factor of inflation and nominal GDP growth. This ratio estimates nominal GDP and debt, so inflation affects and if it is possible to contain debt growth, as Europe did, then in conditions of inflation debt is "burned."

• A fairly low budget deficit, which, despite the actualization of anti-crisis measures of energy compensation, amounted to only 3.3% of GDP, compared with 7% in the crisis of 2009 and almost 12% in the crisis of 2020.

Formally, the debt situation is under control, but in the context of the debt crisis (the inability to be effectively and successfully placed), the issue of the stability of the debt structure with rising rates and a clear deficit in private sector demand arises on the agenda.

Europe is extremely fragmented, where resources are concentrated by the largest and most successful, like France and Germany. Accordingly, one way or another, you will have to redeem the debts of the weak links of the chain, which are becoming more and more.

The buyer of last resort is known - this is the ECB, because in the context of geopolitical events, the energy crisis and the battle for capital between the United States and Europe, it will be very difficult to attract foreign investors, and domestic private demand may not be enough, the Spydell Finance channel noted in February 2023.

2018: National debt of countries per capita

Budget

Main article: Budget of the European Union

ECB and banks

• European Central Bank (ECB)
• European Investment Bank (EIB)
• Banks of Europe

Currencies

Euro

Main article: Euro (currency)

Cryptocurrencies

Main article: Cryptocurrencies in the European Union

Inflation

Main article: EU inflation

Key rate

European Stabilization Mechanism (ESM)

The EU Emergency Rescue Fund, created at the peak of the debt crisis in 2012 as a permanent fund that became the successor to the interim European Financial Stability Fund EFSF.

2024: Plan to use fund funds to lend to gun purchases

In May 2024, sources said, influential figures in the bloc are pushing for the European Stabilization Mechanism (ESM), which is worth 422 billion euros, to go beyond its original role of saving sinking economies. Instead, he could take on the task of allocating cheap loans to buy guns.

Crediting

2023: Average household debt: 52% of GDP

2022: Record collapse in mortgage demand after key rate rises

In January 2023, in the Eurozone, the demand for housing loans record collapsed and prices begin to decline.

Current account

2023: $259 billion surplus, much of it going into U.S. portfolio investment

Europe managed to restore the trade balance and current account to pre-crisis levels.

The STO surplus grew to $100 billion on average for the quarter in the second half of 2023, and for the entire 2023 - $259 billion in total for the year, the average annual STO surplus in 2014-2021 was $340 billion, and in 2022 dropped to the maximum deficit since 2008 due to energy prices.

Where does Europe distribute the STO surplus?

Mainly, the distribution of financial flows goes into portfolio investments (approximately 2/3 go to the United States), while since 2017, net investments in direct investments in the outside world have been zero. There is a gradual increase in monetary transactions in euros in foreign capital markets.

Since 2017, foreign investors have been reducing direct investment with a sharp acceleration from 2022 - a compression of almost $0.8 trillion - the largest and fastest reduction in the history of the Eurozone (geopolitics, barriers to entry into the European market, US competitive advantage).

After the pause of 2015-2018, from 2019 there is an accumulation of portfolio investments by foreign investors, and the pace of plus or minus is comparable to the external portfolio investments of Eurozone residents. The main investors in Europe: the United States, Britain, China and Japan.

The net balance shows that since 2016 Europe has invested much more in the outside world than it receives from foreign investors (the total investments of non-residents in two years for the first time in history have gone into the red).

Insurance

Ernst & Young, July 2, 2012: The persistence of traditionally low interest rates negatively affects participants in the European life insurance sector, who are forced to seek opportunities to narrow the gap between investment income and the minimum level of guaranteed profitability embedded in existing insurance products.

Andy Baldwin, head of Ernst & Young's financial services practice for the EMEIA region (Europe, Middle East, India and Africa), notes: "Insurers are experiencing significant difficulties in securing payments for insurance products sold in pre-crisis times. The dividends that insurers expect to receive for products with a guaranteed level of profitability do not correspond to the level of investment income that insurers now have at their disposal and which they will have in the foreseeable future. The situation is also complicated by current and future capital adequacy requirements, which will entail the introduction of Solvency II. Insurers will have to look for ways to reduce the deficit in the current portfolio, and convince customers to purchase products with lower and less stable levels of guaranteed returns and that's then, when the issues of maintaining capital and ensuring a reliable level of profitability are most acute on the agenda of any client. To narrow the existing gap, insurance companies are trying to optimize the structure of their assets. Paradoxically, the most profitable assets are state loan bonds of individual states, but it is in such assets that regulators strongly advise against investing. "

Asset Management

Ernst & Young, July 2, 2012: According to the forecast, in 2012 the volume of assets under management will increase by only 1.4%. In 2011, the value of assets managed by participants in the eurozone asset management sector decreased by more than 7% compared to 2010, with investments in funds specializing in asset management reduced by 12% and direct investment by 16% (the latter was caused by a reduction in the private equity market by 8% and investors' refusal to share in assets).

Despite some revival of the situation in the first quarter of 2012, when growth in the asset management sector approached 6%, in the second quarter the situation changed again for the worse, in all likelihood, due to the escalation of the sovereign debt crisis in the eurozone, which led to a decrease in quotations in the securities markets and another round of growth in the yield of sovereign bonds of peripheral countries. In Europe the current macroeconomic situation, participants in the asset management sector do not have to rely on the fact that in 2012 they will be able to compensate for losses incurred in 2011.

"Due to continued market alertness, investors in the short term are likely to invest in funds with a diversified asset structure guaranteeing absolute rates of return. At the same time, given the tightening of requirements for funding pension plans, it can be assumed that in the next 20-30 years more than half of the savings will be sent to pension funds. Thus, it is quite possible that pension funds will account for half of all funds of individuals in management, "said Marie Diron, economic consultant in preparing the Ernst and Young economic forecast for the financial services sector of the eurozone countries

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Financial Technology

Main article: Financial technology (fintech) in Europe

Energy and power

Oil and gas production

Main article: Oil and gas production in Europe

Import of gas, coal, oil and petroleum products

Main article: Import of gas, coal, oil and petroleum products in Europe

Power industry

Main article: Electric Power Industry in Europe

Hydrogen Power

Main article: Hydrogen power

2022: Sharp decline in gas consumption in industry and households as its price rises

Total gas consumption for all YeS-27 countries in the first eleven months of 2022 decreased by 11% compared to the level of 2019-2021.

The leaders in the decline in gas demand are Finland (minus 53% in January-November) and the Baltic countries (Latvia, Lithuania and Estonia), which reduced consumption by 27-30%, and by November reached a demand compression of half of the average level 2019-2021.

In November 2022, gas consumption decreased by 23% from the November average in 2019-2021, which is the strongest reduction in demand in modern history according to Bruegel.

In November, the Netherlands reduced gas consumption by 33% by 2019-2021, in France minus 25%, in Germany minus 23%, in Spain minus 22%, in Italy minus 20%, and in Poland minus 10%.

In principle, countries are exceeding the agreed EU plan for a 15% forced reduction.

It is curious that in the priority between industry and the electric power industry, the latter is of higher importance. The leading countries Europe (,, and Germany France) Italy in Spain industry reduced gas consumption by 20-32%, where Germany reduced demand the most, and in the electric power industry the drop in gas consumption averaged 12%.

It is rather not EU policy measures that work here, but the economy, the Spydell Finance channel noted. Gas prices have risen so much that the profitability of production becomes negative, so it is not administrative coercive measures that work, but exclusively market ones.

If gas bills have risen 4-6 times relative to 2021, everything will happen naturally, even directives do not need to be introduced. The most vulnerable industries: petrochemistry, chemistry, metallurgy, production of building materials, fertilizer production, and so on.

2018: Petrol price

Minerals

2022: Memorandum on the supply of REE from Kazakhstan

At the end of 2022, EU representatives signed a memorandum of strategic partnership with Kazakhstan to provide raw materials. The partnership is aimed at supplying rare earth elements, raw materials for the production of batteries and "green" hydrogen to the EU.

Kazakh officials, commenting on the conclusion of the memorandum, said that at present there is an opportunity to supply 16 out of 30 critical elements. At the same time, it was noted that in the future, supplies will be able to partially cover the needs of the EU for all 30 critical REEs.

But there's one legal subtlety: It's about a memorandum, not an intergovernmental agreement or a legally binding treaty. That is, deliveries can be carried out, but the mechanism of compensation and payment to Kazakh enterprises is not clearly spelled out. The text states that the EU countries will help in the modernization of enterprises in Kazakhstan.

Often in such cases, the colony countries buy the necessary equipment, patents for temporary use, consulting services, exploration services, audit services and many other services from the EU. All this is issued in the form of a loan secured by future deliveries. This scheme of work allows you to pump out resources for almost free for decades.

2021: Partnership with Ukraine on REE, noble gases and hydrogen

In 2021, the EU and Ukraine began a strategic partnership on raw materials. His goal was and remains in integrating the supply of raw materials from Ukraine into the chains of high-tech EU products. In Ukraine, it was planned to use Soviet enterprises to produce the necessary REE and noble gases, which will then be used to produce chips and electronics already in the EU.

Similarly, it is planned to use the energy potential of Ukraine for the production of hydrogen. The production itself can be placed in Ukraine, using for this, for example, a nuclear power plant, and the EU countries will already be the consumer of environmentally friendly fuel. Classical colonial addiction.

2020: Critical reliance on rare earth imports

In the EU, the situation with the provision of rare earths is much more complicated than in the United States. The list of critical raw materials for IPC and industry in the latest edition of 2020 contains 30 elements. Of these, 19 are predominantly imported from China. This is, for example, 93% magnesium and 86% rare earth metals.

In the EU, only 1% of critical elements are produced. From China, 40% of the total volume of rare earth elements (REE) used in the EU is supplied. Other major suppliers are South Africa, Russia and Brazil.

Most of the REE included in the list of critical important elements of the EU are mined in Russia. Including 85% of vanadium supplies. Vanadium alloys are used in nuclear reactors. Vanadium oxide is used as a pigment for ceramics and glass, as a catalyst and in the production of superconducting magnets.

According to the European Commission, only for batteries by 2030 will require five times more cobalt and 18 times more lithium than now. Huge volumes of metals are necessary for the production of batteries, windmills, electric vehicles, etc. The batteries use nickel, lithium, cobalt, vanadium and manganese.

As a systematic solution to this problem, it is planned to adopt the Law on Critical Raw Materials in the EU.

The main objectives are:

• Defining a set of "strategically critical raw materials"
• Early Warning System
• Access to funding
• Improved waste and cycle structure to advance recycling.

A small example: a 3 mW wind generator requires 335 tons of steel, 4.7 tons of copper, 1,200 tons of concrete, 3 tons of aluminum, 2 tons of rare earths, as well as zinc. For almost all positions, the EU is dependent on imports, including from Russia.

Business

• Start-ups in Europe

2024:46 thousand companies with Russian participation operate in the EU

As of July 2024, about 46 thousand companies with Russian participation operated in the EU countries. Moreover, more than two-thirds of them (70%) are located on the territory of five EU states. Such data are given in the materials of Moody's, published on August 19, 2024.

Moody's gives a rating of the EU countries with the largest number of companies with Russian participation:

· Czech Republic - 12,480;

· Bulgaria - 9581;

· Germany - 4296;

· Latvia - 3338;

· Italy - 2539.

We are talking about companies that are more than 40% directly or indirectly owned by Russian legal entities or individuals, including those with dual citizenship. It is noted that, in accordance with the rules of the European Commission, from July 2024, EU credit and financial institutions are obliged to comply with the new reporting requirements for transactions of Russian persons. In particular, organizations must report transfers in the amount of more than €100 thousand from the European Union to third countries if they are made by companies with Russian participation.

46 thousand companies with Russian participation operate in the EU

The reporting rules introduced apply to various financial assets, such as cash, checks, money claims, bills of exchange, money transfers and other payment instruments, deposits with financial institutions or other entities, account balances and debts. The requirement was introduced as part of the 12th package of EU sanctions against Russia in connection with the emerging geopolitical situation. It is argued that the regulations "are aimed at ensuring a more accurate assessment of potential violations of sanctions related to Russia and identifying sources of Russian income." EU member states are tasked with assessing information transmitted by credit and financial institutions to identify potential violations or circumvents of sanctions.^[1]

2023: Company bankruptcies hit highest since 2015

According to the results of the second quarter of 2023, the number of bankrupt companies in the European Union reached 106 - this is the maximum figure since the start of data collection in 2015. Such figures are contained in a study by the European Union Statistics Office (Eurostat), the results of which were released in mid-August 2023.

The report says that compared to the first quarter of 2023, the number of bankruptcies of enterprises in the EU in the second quarter of this year rose by 8.4%. Thus, the number of bankrupt companies is growing for the sixth quarter in a row. The situation is explained by several reasons, including macroeconomic challenges and high inflation.

If we consider the EU market by type of activity, then in all sectors of the economy there was an increase in the number of bankruptcies in the second quarter of 2023 compared to the previous quarter. The most affected are the hotel business and the catering sector, where the number of bankruptcies in quarterly terms increased by about 24%. In the field of transport and warehouse services, the number of bankrupt enterprises rose by about 15% compared to the previous quarter, while the education, health and social activities sector recorded an increase of 10%.

The study also says that the level of bankruptcy of companies in the EU in the second quarter of 2023 increased in almost all sectors compared to the fourth quarter of 2019 - before the start of the COVID-19 pandemic. The only exceptions were industry and construction, where the number of bankrupt enterprises decreased by 11.5% and 2.7%, respectively. The largest increase in the number of bankruptcies compared to the last quarter of 2019 was recorded in the field of hotel business and catering - plus 82.5%.^[2]

2022: Record number of bankruptcies due to failed policy of pressure on Russia

In Europe, in the 4th quarter of 2022, the number of company bankruptcies increased sharply, which is a direct consequence of a significant drop in business margins in the context of the energy and inflation crisis.

European businesses are holding back employment and, amid personnel shortages, are raising salaries at a faster pace than productivity is growing, but shifting costs to themselves, reducing profitability.

The growth of intermediate costs (energy, logistics, intermediate goods) and the growth of wages extremely negatively affects the stability of European business and many do not withstand the stress test.

The number of bankruptcy applications among EU enterprises increased significantly in the fourth quarter of 2022 (+ 27% compared to the previous quarter + 23% compared to pre-pandemic 2019) and reached the highest level since the start of data collection in 2015.

Eurostat collected these statistics on a voluntary basis from 2015 to Q4 2020 and mandatory from Q1 2021, so the data are not fully representative, but at least make it possible to understand the trends regarding 2021, the Spydell Finance channel noted.

There is definitely a blow to business, although not in the place where one would expect. It was assumed that the industry would take the brunt, but so far this is not the case.

Transport and storage (+ 73% qoq, + 85% compared to 2019), accommodation and nutrition services (+ 39% qoq and + 97% by 2019), as well as education, health care and social activities (+ 30% and + 40%, respectively) were activities with the largest increase in the number of bankruptcies in 4 qoq 2022.

At the same time, bankruptcies in industry (production + processing) practically did not change in Q4 2022 compared to Q3 2022 and decreased by 18% compared to 2019. The same applies to construction (+ 6% and minus 10%, respectively).

Wholesale and retail trade (+ 21 %/+ 11%), finance, scientific and business services (+ 20 %/+ 30%), IT and communications (+ 20 %/minus 5%).

These statistics are not weighted by the size of the companies, but make it possible to understand the potential risks and direction.

2021: Corporate deposits hit record €3.2 trillion

By August 2021, eurozone companies have the largest cash reserves on record.

Deposits of non-financial companies in the eurozone at the end of July reached a record level of 3.2 trillion euros (3.8 trillion) dollars , according to the ECB. This is about 600 billion euros more than the amount held by creditors at the beginning of the pandemic COVID-19 in 2020.

R&D

2022

2021: EU increases research spending by 45% over 10 years

In 2021, the European Union spent approximately €331 billion on research and development (R&D). This is 6.9% more compared to the previous year, while the growth compared to 2011 was about 45%. Such data are provided in a study by the EU Statistical Service (Eurostat), the results of which were released on October 4, 2023.

It is noted that R&D costs in 2021 decreased to 2.27% of GDP compared to 2.3% a year earlier. This can be explained by the recovery in GDP in 2021 after a significant drop in 2020, provoked by the COVID-19 pandemic. Compared to 2019, the share of R&D in relation to GDP rose by 0.05%, and compared to 10 previous years - by 0.26%.

Among the EU countries, the highest R&D intensity in 2021 was recorded in Belgium (3.43% of GDP), Sweden (3.4%), Austria (3.26%) and Germany (3.13%), that is, in all these countries spending exceeded 3% of GDP. At the same time, six EU countries recorded R&D costs below 1% of their GDP in 2021: these are Romania (0.47%), Malta (0.65%), Latvia (0.74%), Bulgaria (0.77%), Cyprus (0.83%) and Slovakia (0.92%).

The study says that seven EU countries registered a decrease in R&D intensity from 2011 to 2021: Finland (minus 0.63%), Estonia (minus 0.55%), Ireland (minus 0.44%), Luxembourg (minus 0.38%), Slovenia (minus 0.29%), Denmark (minus 0.18%) and Malta (minus 0.01%).

In 2021, the business sector accounted for 65.95% of the total R&D costs in the European Union, which is equivalent to €218.32 billion. This is followed by the higher education segment (21.76%; €72.03 billion), the state industry (11.64%; €38.55 billion) and the private non-profit sector (0.65%; €2.14 billion). R&D is said to be the main driver of innovation in many areas.^[3]

Foreign trade

Main article: EU Foreign Trade

Sectors of the economy

Industrial production

Main article: Industry in the European Union

Tourism

Telecom

• Telecommunications market in EU countries
• Internet access (EU market)
• Online Advertising (European Market)
• Smartphones (European market)
• Wearable Electronics (European Market)

Internet

• Internet regulation in EU countries

Information Technology

• Europe's IT Market
• Western Europe IT Market
• Blockchain (European market)
• Major Oracle and SAP partners in Europe

Construction

2022: Construction volumes remain stable

Real estate

2023: Commercial property transactions collapse by 58%

In the second quarter of 2023, the volume of commercial real estate transactions in Europe fell by 58% to the lowest level since 2010.

The office segment suffered the most - the fall was 68%, while in the hotel segment the fall was 36%. In all major markets, there was a significant decrease in the volume of transactions.

MEDIA

• Media in Europe

Agriculture

2023: France leads by output with 18% EU share

France is the largest producer of agricultural products in the EU, accounting for about 100 billion euros a year, or about 18% of total production in 2023.

2022: High level of state support for agriculture

Labour market

2022: The average annual number of working hours per person is more than 1550

2019: Average productivity in EU countries

Unemployment

2023: Record low unemployment in the Eurozone - 6.4%

The eurozone unemployment rate hit a record low in November 2023, despite fears that the 20-nation bloc fell into recession in the second half of 2023.

The unemployment rate fell to 6.4% from 6.5% in October, Eurostat said on Tuesday, the equivalent of nearly 11 million people out of work in a region of more than 300 million.

2022: Unemployment at historic low

2012

In June 2012, unemployment in 17 eurozone countries was 11.2 percent, a record for the entire observation period (Eurostat)^[4] reached^[4].

According to Bloomberg, in May, statistical departments recorded an unemployment rate of 11.1 percent. The number of unemployed in the region increased by 123 thousand to 17.8 million people.

Spain is the leader in this indicator among the countries participating in the monetary union. The lowest unemployment rates are observed in Austria (4.5%) and the Netherlands (5.1%).

The number of unemployed in Spain amounted to 5.7 million, which is 24.6 percent of the total working population of the country.

Unemployment in Italy in June rose to 10.8%, a record since 1999. The share of the working population was 56.9%, and the share of economically inactive citizens was 36.1%. The largest number of unemployed people are young people aged 15 to 24 - 34.3 percent of people in this age group do not work.

In Germany, the figure was 6.8%, unchanged from last month. The number of unemployed in the country amounted to 2.89 million people.

The International Labor Organization (ILO) believes that the number of jobs is declining due to government policies to reduce budget spending, which negatively affects economic growth. According to ILO forecasts, if the authorities do not take measures to stimulate the economy, the number of unemployed in the eurozone in the next 4 years could grow to 22 million people.

• Ernst & Young, June 2012: The widening gap in eurozone economies continues to widen the disparity in labour markets. The share of unemployed reached nearly 25% in Spain, 22% in Greece and 15% in Portugal, with unemployment rising between 3% and 4% in each of these markets over the past six months. This further weakens domestic demand and reduces investment, as well as limits the ability of these governments to implement plans to reduce the budget deficit. At the same time, unemployment remains below 6% in Germany, Austria and the Netherlands.

• Unemployment in April 2012 in the eurozone updated the record to 11 percent (Eurostat data).

April unemployment in Italy also turned out to be a record: according to preliminary data, it amounted to 10.2 percent. As the AGI agency clarifies, the indicator has reached a record since 2004. Compared to March, unemployment increased by 0.1 percent, on an annualized basis, the figure increased by 2.2 percent.

On May 31, 2012, the upper house of the Italian parliament approved the reform of the labor market, according to which the dismissal process will be simplified. Thus, the authorities hope to stimulate employers to hire more new employees, primarily young people. In addition, the government of Prime Minister Mario Monti plans to introduce a missing system for paying unemployment benefits.

• Statistical departments have been keeping records of unemployment in the eurozone since 1995.

Incomes and expenses of the population

The richest people in Europe

Main article: The richest people in Europe

2022: Real income crash as inflation soars due to sanctions against Russia

2021: The EU counted 24 million very poor residents

In mid-September 2021, data appeared that 24 million workers throughout the European Union EU () live below the poverty line on the minimum wage. This was reported in the European Confederation of Trade Unions (ETUC; represents 45 million members of 90 trade unions from 38 countries Europe and 10 European trade union federations). More. here

2020: Denmark, Netherlands and Sweden lead in citizen welfare

At the end of 2020, Danish families are the richest in the European Union, having the largest reserves of cash and pension savings.

According to the Central Copenhagen dollars Bank, collected in, Danes have about 1.3 million kronor (US 208,000) of financial assets per capita, more than twice the EU average. It's after debt deduction.

That puts Denmark on top, with the Netherlands, Sweden, Luxembourg and Belgium rounding out the top five.

2012

Ernst & Young, June 2012: The deterioration of the labor market, low wage growth and uncertainty about the future of the single currency negatively affect consumer confidence. With the exception of Germany, whose population, according to recent studies, is muted optimism, consumer confidence in eurozone countries has continued to decline in recent months.

Therefore, according to the economic forecast for the eurozone countries in 2012, real consumer spending will increase by about 0.9% in Germany and only by 0.2% in France, while in most other countries of the euro zone they will remain at the same level or decrease.

Taking into account the dissipating concerns about the structure of the eurozone in 2013, further growth of consumer spending in the strongest countries is predicted at the level of 1%. However, household spending in peripheral countries in 2013 is likely to continue to decline and resume growth only in 2014.

Retail

2023: Europe's retail sales slump intensifies

The decline in retail sales in Europe is intensifying amid high inflation, a slowdown in income growth, rising loan rates and the integral stagnation of the economy.

In August 2023, compared to December 2019, retail sales growth was only 1.5% for the Eurozone countries and 2.6% for the YeS-27 countries. The result in almost four years is very mediocre, but how to see it.

On the one hand, we can say that without visible consequences, the following were overcome: the COVID-19 2020-2021 crisis, the 2022 energy crisis, the inflation crisis 2022-2023 and the 2023-2024 debt crisis is reaching full capacity. A series of continuous crises swept Europe and the blow is more significant among developed countries than in the United States or Japan.

On the other hand, the lack of growth over 4 years, given the full potential of subsidies and monetary experiments, which resulted in debt accumulation and structural degradation.

2022: Retail volume declines due to standoff with Russia

The demand of the population in Europe against the background of the conflict in Ukraine began to fail. Exactly, as in the United States, dwindling savings and credit activity support demand, but the supply of resources is limited against the background of a record failure of income in real terms over 40 years. In terms of income in Europe, the situation is much worse than in the United States.

Retail sales in the Eurozone are only 2.2% higher than in January 2020 (the last month without restrictions related to COVID-19). Relative to 2021, retail sales in October decline by 2.7%, and throughout Europe minus 2.4%.

There is an accelerated decrease in consumption of food and drinks by 3.9% YoY against the background of record inflation in this segment, which emphasizes the blow to the least affluent class of the population in Europe.

2018: Map of the largest retailers by country

Consumption

Car market

• Automobile market of the European Union

Tea

2018: Per capita tea consumption per kg per year

Milk

2018: Milk consumption in litres per year per person

Meat

2019: Pork is the most consumed type of meat

Beer

2019: Beer consumption in litres per year per person

Alcohol market

Minimum age to purchase alcoholic beverages

Notes