The European economy is made up of over eight hundred and thirty million people across forty eight different ‘states’ or countries. Like any continent, the wealth of these countries will vary depending on various factors and again as is the case elsewhere, the European economy in most countries has been affected by the recent economic crisis. However the poorest states in Europe are still generally wealthier than the poorest in other states and countries in terms of GDP and living conditions.
By adopting the Euro (a single currency for many European countries) the European economy has increased and stabilised. This was a forwards-thinking idea for the European economy proposed by the UN, the success of which could present the beginnings of a move towards a truly global economy. This also makes it easier for residents going on holiday between European countries, for business and for exports and imports within the continent. Not every European economy agreed to a unified currency however; the UK being one of the most notable members of the EU that has opted to reject the Euro. This may in part be to the UK being a separate island and the ‘island mentality’ that seems to go along with this. At the same time, the British Pound is still stronger than the Euro suggesting that it may not be in the UK’s best interest to adopt the Euro. Both the pound and Euro are counted towards the European economy and both are stronger than the US dollar. There is also a divide between the Western and Eastern European countries with those in the West enjoying better living standards and a stronger GDP. This is partly due in some cases to previous communist regimes, and in others due to differences in industry and exports. Some countries such as Turkey and the Russian Federation have territories only partly in Europe but and so only partly contribute to the European economy.
Europe was the first industrial continent which has made the European economy historically one of the most successful with the UK leading the way in the 18 hundreds. This is partly the reason for the European economy (and particularly Western Europe) being so healthy today. Since World War 2 this industrialisation grew rapidly while the economies of the various European countries became closer. This was partly what eventually lead to the formation of the EU in 1999 and the related introduction of the Euro to the European economy.
It is however Germany that has the largest national economy in Europe which ranks fourth globally for GDP and fifth for purchasing power parity (PPP). This is followed by the European economy of France, the UK and Italy respectively. Taken as a single country, the European Union would be the world’s largest economy in terms of GDP. If we apply various business valuation methods to the analysis of European economy then Europe is also the world’s richest region in terms of assets under management; with the European economy having over $32 trillion dollars in investments and assets compared to North America’s $27 trillion.
Posted under Europe
This post was written by admin on May 27, 2010