Money Buzz! Europa

Tag: euro zone

  • For the first time in history, China overtook the US as the Euro Area’s top trading partner

    For the first time in history, China overtook the US as the Euro Area’s top trading partner

    According to the research data analyzed and published by Comprar Acciones, Chinese imports from the EA rose by 5.6% and exports increased by 2.2% in 2020.

    US imports, on the other hand, plummeted 13.2% as exports fell by 8.2%.

    Based on IMF projections, China’s GDP is set to grow by 8.1% in 2021 following its 2.3% growth in 2020. By 2022, the rate will slow down to 5.6%.

    In 2020, Euro Area exported goods were worth €2.13 trillion to the rest of the world, a 9.2% decline from 2019.

    Euro Zone imports fell by 10.8% to €1.89 trillion during the period, while Intra-Euro area trade fell by 8.9%.

    However, there was a slight recovery in December 2020, with exports up by 2.3%, imports down by 1.3% and Intra-Euro trade up by 0.9%.

    India is expected to have the highest GDP growth in 2021 at 11.5%, following an 8% decline in 2020. In the Euro area, Spain is expected to have the highest growth in 2021 at 5.9%.

    The UK is expected to grow by 4.5% after its massive 10% decline in 2020. Its 2020 GDP contraction was twice the 2009 fall and worse than the 1921 drop of 9.7%.

    According to the US government’s preliminary reports, its GDP fell by 2.3% in 2020 to $20.93 trillion. Meanwhile, China grew its GDP to $14.7 trillion (101.6 trillion yuan).

    That narrowed the gap between the two powerful countries to $6.2 trillion, compared to $7.1 trillion in 2019.

    However, China’s per capita GDP was $11,000 in 2020. Comparatively, the US had more than five times that total, at $63,200.

  • Euro zone: Four out of ten card transactions were made using contactless technology

    Euro zone: Four out of ten card transactions were made using contactless technology

    Euro area consumers are gradually shifting towards cards for in-person retail payments, although cash remained the most used instrument at the end of 2019, data published by the European Central Bank (ECB) show.

    Last year euro area adult consumers used cash for 73% of their point-of-sale and person-to-person retail transactions (48% in value terms).

    In a previous ECB study conducted in 2016, the figure was 79% of these transactions (54% in value terms).

    The use of cards for in-person retail payments increased by 5 percentage points over the same three years, from 19% to 24% (41% in value terms).

    Almost four out of ten card transactions were made using contactless technology in 2019.

    For their online shopping, euro area adult consumers paid mainly by card (49% of transactions) and one out of four online transactions was made using e-payment solutions.

    Four out of ten bill payments were made using direct debit and two out of ten by credit transfer.

    How Covid-19 pandemic changed payment behavior

    Four out of ten respondents replied that they had used cash less often since the start of the pandemic. While most of those who fell into this category expected to continue to do so after the pandemic, the long-term impact on payment behaviour is still uncertain.

  • Euro area unemployment at 8.1% in August 2020

    Euro area unemployment at 8.1% in August 2020

    In August 2020, the euro area seasonally-adjusted unemployment rate has continued to rise for 5 consecutive months, reaching 8.1%.

    The same trend has applied to the EU unemployment rate that reached 7.4% in August, show the latest figures published by Eurostat.

    Eurostat estimates that 15.603 million men and women in the EU, of whom 13.188 million in the euro area, were unemployed in August 2020.

    Compared with July 2020, the number of persons unemployed increased by 238.000 in the EU and by 251.000 in the euro area.

    In August 2020, 3.032 million young persons (under 25) were unemployed in the EU, of whom 2.460 million were in the euro area. In August 2020, the youth unemployment rate was 17.6% in the EU and 18.1% in the euro area, up from 17.4% and 17.8% respectively in the previous month.

    Compared with July 2020, youth unemployment increased by 64.000 in the EU and by 69.000 in the euro area.

    In August 2020, the unemployment rate for women was 7.6% in the EU, up from 7.5% in July 2020.

    The unemployment rate for men was 7.1% in August 2020, stable compared with July 2020.

  • Euro area unemployment registered a slight increase and sits at 7.9%

    Euro area unemployment registered a slight increase and sits at 7.9%

    In July 2020 the euro area seasonally-adjusted unemployment rate was 7.9%, up from 7.7% in June 2020.

    The EU unemployment rate was 7.2% in July 2020, up from 7.1% in June 2020, shows Eurostat.

    Eurostat estimates that 15.184 million men and women in the EU, of whom 12.793 million in the euro area, were unemployed in July 2020.

    Compared with June 2020, the number of persons unemployed increased by 336.000 in the EU and by 344.000 in the euro area.

    The unemployment rate for women was 7.5% in the EU, up from 7.3% in June 2020. The unemployment rate for men was 7.0% in July 2020, up from 6.8% in June 2020.

    In the euro area, the unemployment rate for women increased from 8.0% in June 2020 to 8.3% in July 2020 while it increased from 7.5% to 7.6% for men.

  • Euro zone unemployment at 7.8%, EU at 7.1% in June 2020

    Euro zone unemployment at 7.8%, EU at 7.1% in June 2020

    In June 2020 the euro area unemployment rate was 7.8%, up from 7.7% in May 2020. The EU unemployment rate was 7.1% in June 2020, up from 7.0% in May 2020.

    Eurostat estimates that 15.023 million men and women in the EU, of whom 12.685 million in the Euro area, were unemployed in June 2020.

    Compared with May 2020, the number of persons unemployed increased by 281.000 in the EU and by 203.000 in the euro area.

    Youth unemployment

    In June 2020, 2.962 million young persons (under 25) were unemployed in the EU, of whom 2.360 million were in the euro area.

    In June 2020, the youth unemployment rate was 16.8% in the EU and 17.0% in the euro area, up from 16.2% and 16.5% respectively in the previous month. Compared with May 2020, youth unemployment increased by 124 000 in the EU and by 80 000 in the euro area.

    Unemployment by gender

    In June 2020, the unemployment rate for women was 7.5% in the EU, up from 7.3% in May 2020.

    The unemployment rate for men was 6.7% in June 2020, up from 6.6% in May 2020. In the euro area, the unemployment rate for women increased from 8.1% in May 2020 to 8.3% in June 2020 while it increased from 7.3% to 7.4% for men.

  • Sharpest drop of household real consumption per capita in EU

    Sharpest drop of household real consumption per capita in EU

    In the first quarter of 2020 household real consumption per capita dropped by 3.0% in the euro area, after a decrease of 0.4% in the previous quarter.

    This decline is the highest since the beginning of the Eurostat time series in 1999.

    Household real income per capita increased in the first quarter of 2020 by 1.1%, after a decrease of 1.1% in the fourth quarter of 2019.

    In the EU household real consumption per capita decreased by 2.9% in the first quarter of 2020, after a decrease of 0.2% in the previous quarter.

    Household real income per capita increased by 1.2% in the first quarter of 2020, after a decrease of 1.0% in the fourth quarter of 2019.

    Household saving rate significantly up

    In the first quarter of 2020, the saving rate increased in both the euro area and the EU by 4.3 percentage points, compared to the fourth quarter of 2019.

    The household saving rate increased in all Member States, for which data are available for the first quarter of 2020.

    The highest increases were observed in Belgium, Denmark and the Netherlands, and the lowest in Poland, Sweden and Czechia.

    For all but two Member States, the increase of the saving rate was explained by the strong decrease of individual consumption expenditure.

    The drop in the individual consumption expenditure of households was the most pronounced in Italy, Spain and Belgium, followed by France. At the same time, the gross disposable income varied, increasing in Poland, Denmark, Czechia, Ireland, the Netherlands and Finland and decreasing in Spain, Italy, Portugal, Germany and Austria.

    Household investment rate down

    In the first quarter of 2020 the investment rate decreased by 0.2 percentage points for the euro area and 0.3 percentage points in the EU.

    Among the Member States for which data are available for the first quarter of 2020, the decrease in investment rate of households was the highest in Spain, France and Belgium.

    Seven Member States recorded an increase in the household investment rate, the highest being observed in Germany, the Netherlands and Denmark.

  • Industrial production up by 12.4% in euro area and 11.4% in EU

    Industrial production up by 12.4% in euro area and 11.4% in EU

    In May 2020 industrial production rose by 12.4% in the euro area and by 11.4% in the EU, compared with April 2020, according to estimates from Eurostat.

    In April 2020, industrial production fell by 18.2% both in the euro area and in the EU.

    In May 2020 compared with May 2019, industrial production decreased by 20.9% in the euro area and by 20.5% in the EU.

    In the euro area in May 2020, compared with April 2020, production of durable consumer goods rose by 54.2%, capital goods by 25.4%, intermediate goods by 10.0%, non-durable consumer goods by 2.8% and energy by 2.3%.

    In the EU, production of durable consumer goods rose by 47.7%, capital goods by 24.8%, intermediate goods by 8.7%, energy by 2.5% and non-durable consumer goods by 1.8%.

    The highest increases were registered in Italy (+42.1%), France (+20.0%) and Slovakia (+19.6%).

    The largest decreases were observed in Ireland (-9.8%), Croatia (-3.5%) and Finland (-1.3%).

  • Bulgaria enters the waiting room for the eurozone and the banking union

    Bulgaria enters the waiting room for the eurozone and the banking union

    The European Central Bank included the Bulgarian lev in the Exchange Rate Mechanism (ERM II).

    The central rate of the Bulgarian lev is set at 1 euro = 1.95583 leva and the standard fluctuation band of plus or minus 15 percent will be observed around the central rate of the lev.

    The agreement on participation of the lev in ERM II is based on the commitment by Bulgaria to join the Banking Union and ERM II simultaneously and the completion by the Bulgarian authorities of a set of measures, described in an letter of intent dated 29 June 2018.

    These measures pertain to the following six policy areas: banking supervision, the macroprudential framework, the supervision of the non-banking financial sector, the anti-money laundering framework, the insolvency framework, and the governance of state-owned enterprises.

    The agreement on participation of the Bulgarian lev in ERM II is furthermore accompanied by a firm commitment by the Bulgarian authorities to pursue sound economic policies with the aim of preserving economic and financial stability and achieving a high degree of sustainable economic convergence.

    The Bulgarian authorities have committed to implement specific policy measures on the non-banking financial sector, state-owned enterprises, the insolvency framework, and the anti-money laundering framework.

    Bulgaria will also continue implementing the extensive reforms carried out in the judiciary and in the fight against corruption and organized crime in Bulgaria, in light of their importance for the stability and the integrity of the financial system.

  • Euro zone area unemployment at 7.4%

    Euro zone area unemployment at 7.4%

    In May 2020 the euro area seasonally-adjusted unemployment rate was 7.4%, up from 7.3% in April 2020.

    The EU unemployment rate was 6.7% in May 2020, up from 6.6% in April 2020.

    These figures are published by Eurostat, the statistical office of the European Union.

    Eurostat estimates that 14.366 million men and women in the EU, of whom 12.146 million in the euro area, were unemployed in May 2020.

    Compared with April 2020, the number of persons unemployed increased by 253 000 in the EU and by 159 000 in the euro area.

  • Household saving rate all time high at 16.9% in the euro area

    Household saving rate all time high at 16.9% in the euro area

    The household saving rate in the euro area was at 16.9% in the first quarter of 2020 compared with 12.7% in the fourth quarter of 2019.

    This was the highest increase since the beginning of the series in 1999.

    The household investment rate in the euro area was 8.7% in the first quarter of 2020, lower than the rate of 9.1% during the previous quarter.

    These data come from a first release of seasonally adjusted quarterly European sector accounts from Eurostat, the statistical office of the European Union and the European Central Bank (ECB).

    The quarterly increase of the household saving rate of 4.2 percentage points is related to 0.9% increase of gross disposable income and 4.0% decline in individual consumption expenditure of households.

    The quarterly decline of 0.4 percentage points compared to the previous quarter is explained by 3.2% decline in gross fixed capital formation and 0.9% increase of gross disposable income.

  • Business profit share recorded sharpest drop in the euro area

    Business profit share recorded sharpest drop in the euro area

    In the first quarter of 2020, when Member States began to widely introduce COVID-19 containment measures in March 2020, the business profit share dropped to 37.9% in the euro area, compared with 39.6% in the previous quarter.

    This decline of the business profit share is the highest since the beginning of the series in 1999.

    The business investment rate in the euro area was slightly down to 25.5% in the first quarter of 2020, compared with 25.8% in the previous quarter.

    These data come from a first release of seasonally adjusted quarterly European sector accounts from Eurostat, the statistical office of the European Union, and the European Central Bank (ECB).