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PwC: Eurozone “not a drag on global GDP” in 2013

Analysis

International business consultancy/services firm PricewaterhouseCoopers has released its Global Economy Watch for December 2013, a wide-scope macroeconomic view that this time figures the Gulf economies are serious movers while the Eurozone is at least “not a drag on global GDP.”

PwC found that, while significant gains in growth may be observed among the Gulf economies and the “Emerging Seven” (E7) nations (Brazil, Russia, India, China, Indonesia, Mexico, Turkey), that “even some positive news [came] out of the Eurozone”: According to PwC, “Q3 GDP data showed the bloc grew by 0.1% quarter-on-quarter, implying it is no longer dragging down global GDP.”

The analysis did note divergence between the more stable and “peripheral” economies within the Zone, however, with the latter still looking at “a long way to go to reach their pre-crisis GDP levels.”
PwC, which has maintained a view of a weak but gradual recovery for Eurozone economies in 2013, noted the nicely positive news of growth in Portugal and Spain, whose GDPs rose 0.2% and 0.1% q.o.q., respectively. On the minus side, while Germany has enjoyed 4% *growth* since the fourth quarter of 2007 (a boundary established by PwC to define “economic crisis”), Spain’s GDP is a whopping 5% below its level of the same period.

The current projection by PwC for 2014 has overall Eurozone GDP increasing by 0.9%, higher than the 0.7% prescribed to rejuvenate the bloc’s economies by 2015. The analysis points out, however, with the projections in place, the peripheral Italy would have to see average GDP growth of 4.1% over the next two years to regain pre-crisis levels.

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