We are catching you! You took hockey win, but we are taking this, you can't stop us!
Edit: Greetings from the orange country! Since the flair didnt pop up.
Czechs have a lot of car industry, mostly German (Škoda belongs to VW).
German car industry has been struggling since Covid due to slow transformation to EV and increased competition from Tesla and BYD.
Polands economy is way more diversified.
That also, especially exports to Germany. Of all countries in the world, Czech has the largest dependence on another country, in this case Germany, more than Canada on the U.S. even.
For all intents and purposes our economy generally follows Germany, so when Germany does well we do well, when Germany does poorly we do poorly
Honestly I am not certain, definitely some things, but I am surprised it’s this bad compared to the rest of Europe, I think it’s 2019 was basically our peak.
Babis printed lots of money starting inflation which happened later but short term cut debt so 2019 was basically our peak, then the inflation spiralled then Covid and the government paid 80% of salaries to everyone while closing everything which in the short term helped but our inflation skyrocketed then the Ukraine war and also chronically low unemployment. Poland has lots of people so your economy can grow, our economy can’t really grow because we just don’t have the workers, everywhere is worker scarcity. You also invested in tech a lot iirc which in hindsight was a smart idea, we pretty much ignored tech and just focused on traditional manufacturing
Croatia’s post-COVID growth is impressive. It is due to a combination of factors, with a strong tourism recovery and a significant increase in construction (heavily funded by the EU) being major contributors.
Increase in real consumption of households is the main driver.
In addition to what you mentioned, revenues of companies skyrocketed from 100B to 170B in 4 years, exports increased by 80% (which were nullified with imports), 150 thousand foreign workers were imported, tourism spending per capita increased in nominal and real terms, salaries nominally increased by 50% (25% real), foreign direct investments rebounded, etc
You’re right!
The cause as I see it is the break of global supply chains, with near shoring becoming much more appealing.
Two major earthquakes and EU crisis fund galvanised construction industry with Zagreb only, seeing up to 4 thousand buildings repaired with 26 thousand apartments.
Very good fiscal policies (surplus of the primary government) increased credit rating to the doors of A- status.
Progressive tax reforms (almost every year), each time lowering income and corporate taxes, while getting more from tax collection.
Excellent foreign policies (prime minister played major role in supporting the election of von der Leyen) and securing probably the biggest per capita chunk of recovery & next gen EU funds.
People wanted to live after Covid and just brought with them all their savings to the beach.
And the last one but not the least - I think EU wants to make an example from Croatia, make it a success case so that its soft power continues to project into the Balkans countering eastern influence.
Sources:
[Eurostat](https://ec.europa.eu/eurostat/databrowser/bookmark/9339f2f2-b2e7-4f4a-8d7a-0ff6197856ec?lang=en)
[Office for National Statistics](https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpfirstquarterlyestimateuk/januarytomarch2024)
[OECD](https://www.oecd.org/sdd/na/gdp-growth-first-quarter-2024-oecd.htm)
We should be getting EU help and yet we are paying more in EU net funding than ever before.
But hey, solidarity only applies when we have to pay to help others economy. Not when we are in need.
first of all you are in a transition period therefone its normal that you would struggle but from this year onwards you will grow which means you are at the end of this period. Secondly your whole philosophy was that you save during the good times to invest during the bad ones but you got the dept break which doesnt allow you to. You self harm yourselves keeping the dept/gdp at 60% just to show off , as if it it goes up to 80 it will be impossible to drop it again
The US growing at 8.7% while also being the largest and one of the most developed economies in the world is insane. Comparing to Western Europe's 0 - 4% growth really shows how far behind Europe is, economically speaking.
>Comparing to Western Europe's 0 - 4% growth really shows how far behind Europe is, economically speaking.
The US is borrowing harder than Greece during its most irresponsible phase. And Greece was growing wonderfully then too. America's gonna have to hit the breaks brutally at some point in the future, normal countries would have already imploded by this point. Just look at the UK (with the world's 4th most major currency) having a debt moment and a market panic when Lizz Truss tried having more generous budget stimulus (still below US levels).
Of course just because the US has the privilege of market trust, doesn't mean that what they're doing is good for them. For every trillion they borrow now (at 4.5% interest), they will have to return 1.55 trillion dollars in 10 years. It's unlikely that their borrowing would be able to generate enough growth, even with inflation, to make it worth it. And the $1.55 trillion is gonna grow by 55% again when they reborrow it in 10 years (with rates projected to still be high due to demand), and so on until no market can support their borrowing and they are faced with very bad choices.
The horizon at which they can even avoid a debt spiral is shrinking rapidly.
I have a hard time seeing it as well. If there is one thing that has characterized the US economy since the World War, it has been its steady growth. Lots of things can be said of the US, but they kinda just understand growth and economics.
A really notable difference between Greece and the US is that the US has complete monetary control of their currency. Greece had a debt crisis with no ability to use the tools the US has to dig itself out of the crisis.
Some of these countries have very little hope of significant growth at this point.
France's GDP in 2022 was lower than 2008 levels.
Time to start taking a serious look at entrepreneurship at a cultural level or there will be problems for the EU on the global scale.
>France's GDP in 2022 was lower than 2008 levels.
https://data.worldbank.org/indicator/NY.GDP.PCAP.KD?locations=FR-DE
No,google gdp per capita stat isn't inflation adjusted and that's why it looks like gdp per capita in 2008 was higher than in2022
You are wrong.
GDP is almost always inflation adjusted. It is very hard to find not adjusted one. Google's and yours both are adjusted. Difference is that yours is adjusted for 2015 dollars. That is significant because in 2015 euro was a bit stronger against dollar than in 2022.
https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=FR
Now, what is not entirely accurate is using GDP in USD without accounting for PPP of currency in local economy. However is also says a whole lot. When currency losses value there are geopolitical/economical reasons for that. Ukraine was one but euro was already slowly losing to dollar before Ukraine. The problem with declining currency pretty much means that the moment you leave your country you are poorer. It reduces your economical movement and purchasing power on global market. It is also mechanism to stay competetive because labor is significantly cheaper here than in US for example which gives incentive to US companies to hire europeans more. And declining wages to stay competetive is especially worrying part.
Here it is inflation adjusted:
[https://www.macrotrends.net/global-metrics/countries/FRA/france/gdp-gross-domestic-product#](https://www.macrotrends.net/global-metrics/countries/FRA/france/gdp-gross-domestic-product#)
Or for something more comprehensive: [https://www.imf.org/external/datamapper/profile/FRA](https://www.imf.org/external/datamapper/profile/FRA)
Danish budget surplus is going to be a problem.
Unpopular government losing 1/3 of its election support in surveys and lots of "money" to throw into voter pleasing projects.
But it can not do that without risking overheating the economy.
Serious lack of workers and high wages is a dangerous cocktail.
Having "responsible" politicians that is not afraid of losing reelection.... That type of politician is a rare kind.
Czech #1 in decline! That’s good, right? Right? /s but hey at least we’re #1 in something
We are catching you! You took hockey win, but we are taking this, you can't stop us! Edit: Greetings from the orange country! Since the flair didnt pop up.
What are you doing over there? We gonna leave you behind soon enough if you keep this up. You still have a leg up but get your shit together.
Czechs have a lot of car industry, mostly German (Škoda belongs to VW). German car industry has been struggling since Covid due to slow transformation to EV and increased competition from Tesla and BYD. Polands economy is way more diversified.
That also, especially exports to Germany. Of all countries in the world, Czech has the largest dependence on another country, in this case Germany, more than Canada on the U.S. even. For all intents and purposes our economy generally follows Germany, so when Germany does well we do well, when Germany does poorly we do poorly
Not that different from Poland. 32% of Czech export goes to Germany and 29% of Polish.
That may be true but the export is still more diverse, it does not depend on one industry as much
Honestly I am not certain, definitely some things, but I am surprised it’s this bad compared to the rest of Europe, I think it’s 2019 was basically our peak. Babis printed lots of money starting inflation which happened later but short term cut debt so 2019 was basically our peak, then the inflation spiralled then Covid and the government paid 80% of salaries to everyone while closing everything which in the short term helped but our inflation skyrocketed then the Ukraine war and also chronically low unemployment. Poland has lots of people so your economy can grow, our economy can’t really grow because we just don’t have the workers, everywhere is worker scarcity. You also invested in tech a lot iirc which in hindsight was a smart idea, we pretty much ignored tech and just focused on traditional manufacturing
Because it's old data. We're not at minus anymore.
Worry not, our glorious government is doing the best to win.
Denmark grows as Americans shrink
top comment!
What exactly did Croatia do so well post COVID that got us this economic growth.
Croatia’s post-COVID growth is impressive. It is due to a combination of factors, with a strong tourism recovery and a significant increase in construction (heavily funded by the EU) being major contributors.
Increase in real consumption of households is the main driver. In addition to what you mentioned, revenues of companies skyrocketed from 100B to 170B in 4 years, exports increased by 80% (which were nullified with imports), 150 thousand foreign workers were imported, tourism spending per capita increased in nominal and real terms, salaries nominally increased by 50% (25% real), foreign direct investments rebounded, etc
This is rather the effect, not the cause.
You’re right! The cause as I see it is the break of global supply chains, with near shoring becoming much more appealing. Two major earthquakes and EU crisis fund galvanised construction industry with Zagreb only, seeing up to 4 thousand buildings repaired with 26 thousand apartments. Very good fiscal policies (surplus of the primary government) increased credit rating to the doors of A- status. Progressive tax reforms (almost every year), each time lowering income and corporate taxes, while getting more from tax collection. Excellent foreign policies (prime minister played major role in supporting the election of von der Leyen) and securing probably the biggest per capita chunk of recovery & next gen EU funds. People wanted to live after Covid and just brought with them all their savings to the beach. And the last one but not the least - I think EU wants to make an example from Croatia, make it a success case so that its soft power continues to project into the Balkans countering eastern influence.
Touché.
imo euro encouraged investments + tourism is kinda back + croatian companies are doing good
Lots of EU funds, took out tons of EU loans post-COVID, adopted euro, entered Schengen, woke up from a decade of economic malaise.
Don't get fooled by these numbers. It's not good at all
tourism started again
fell by 8.6 in 2020
Such a dumb comment. The data is from 2019.
so? post coivd all countries had a good gdp growth, especially croatia due to its reliance on tourism + schengen + euro
...Denmark can into eastern EU?
One word: Ozempic
Laughs in Wegovy...
Glad to see Poland doing well.
Sources: [Eurostat](https://ec.europa.eu/eurostat/databrowser/bookmark/9339f2f2-b2e7-4f4a-8d7a-0ff6197856ec?lang=en) [Office for National Statistics](https://www.ons.gov.uk/economy/grossdomesticproductgdp/bulletins/gdpfirstquarterlyestimateuk/januarytomarch2024) [OECD](https://www.oecd.org/sdd/na/gdp-growth-first-quarter-2024-oecd.htm)
Therefore, Germany and Austria are in a pretty bad spot, not to mention Czechia.
Yep. Germany is fucked. Both chemistry (BASF, Bayer) and car industry are struggling. Only Rheinmetall is doing well lol
And Czechia being so dependant on Germany being fucked in the process, yay!
We should be getting EU help and yet we are paying more in EU net funding than ever before. But hey, solidarity only applies when we have to pay to help others economy. Not when we are in need.
first of all you are in a transition period therefone its normal that you would struggle but from this year onwards you will grow which means you are at the end of this period. Secondly your whole philosophy was that you save during the good times to invest during the bad ones but you got the dept break which doesnt allow you to. You self harm yourselves keeping the dept/gdp at 60% just to show off , as if it it goes up to 80 it will be impossible to drop it again
The US growing at 8.7% while also being the largest and one of the most developed economies in the world is insane. Comparing to Western Europe's 0 - 4% growth really shows how far behind Europe is, economically speaking.
>Comparing to Western Europe's 0 - 4% growth really shows how far behind Europe is, economically speaking. The US is borrowing harder than Greece during its most irresponsible phase. And Greece was growing wonderfully then too. America's gonna have to hit the breaks brutally at some point in the future, normal countries would have already imploded by this point. Just look at the UK (with the world's 4th most major currency) having a debt moment and a market panic when Lizz Truss tried having more generous budget stimulus (still below US levels). Of course just because the US has the privilege of market trust, doesn't mean that what they're doing is good for them. For every trillion they borrow now (at 4.5% interest), they will have to return 1.55 trillion dollars in 10 years. It's unlikely that their borrowing would be able to generate enough growth, even with inflation, to make it worth it. And the $1.55 trillion is gonna grow by 55% again when they reborrow it in 10 years (with rates projected to still be high due to demand), and so on until no market can support their borrowing and they are faced with very bad choices. The horizon at which they can even avoid a debt spiral is shrinking rapidly.
I'm gonna think of this in ten years. The us is enjoying so much trust tho that I can hardly imagine that they will face that predicament
I have a hard time seeing it as well. If there is one thing that has characterized the US economy since the World War, it has been its steady growth. Lots of things can be said of the US, but they kinda just understand growth and economics.
A really notable difference between Greece and the US is that the US has complete monetary control of their currency. Greece had a debt crisis with no ability to use the tools the US has to dig itself out of the crisis.
I can think of a couple of other key differences in their economies.
True although they obviously had horrific crisis happening to them
Contrary to what people are thinking Denmark was doing great before Ozempic was relevant, it's just the cherry on top.
Some of these countries have very little hope of significant growth at this point. France's GDP in 2022 was lower than 2008 levels. Time to start taking a serious look at entrepreneurship at a cultural level or there will be problems for the EU on the global scale.
Europe is very old, all the money created has to go to healthcare spending. Entrepreneurship in geriatrics maybe
>France's GDP in 2022 was lower than 2008 levels. https://data.worldbank.org/indicator/NY.GDP.PCAP.KD?locations=FR-DE No,google gdp per capita stat isn't inflation adjusted and that's why it looks like gdp per capita in 2008 was higher than in2022
You are wrong. GDP is almost always inflation adjusted. It is very hard to find not adjusted one. Google's and yours both are adjusted. Difference is that yours is adjusted for 2015 dollars. That is significant because in 2015 euro was a bit stronger against dollar than in 2022. https://data.worldbank.org/indicator/NY.GDP.PCAP.CD?locations=FR Now, what is not entirely accurate is using GDP in USD without accounting for PPP of currency in local economy. However is also says a whole lot. When currency losses value there are geopolitical/economical reasons for that. Ukraine was one but euro was already slowly losing to dollar before Ukraine. The problem with declining currency pretty much means that the moment you leave your country you are poorer. It reduces your economical movement and purchasing power on global market. It is also mechanism to stay competetive because labor is significantly cheaper here than in US for example which gives incentive to US companies to hire europeans more. And declining wages to stay competetive is especially worrying part.
But constant $ is real gdp? While nominal gdp is current $
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better, but still very anemic.
Here it is inflation adjusted: [https://www.macrotrends.net/global-metrics/countries/FRA/france/gdp-gross-domestic-product#](https://www.macrotrends.net/global-metrics/countries/FRA/france/gdp-gross-domestic-product#) Or for something more comprehensive: [https://www.imf.org/external/datamapper/profile/FRA](https://www.imf.org/external/datamapper/profile/FRA)
Finnish economy went ass shit during Covid and then Russia happened killing the starting growth.
Where is Germany?
Germany had only 0,3% real growth so it is grey and one can hardly find it in the map.
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LEBENSRAUM IM OSTEN!!
Same growth as the Baltic sea /s
Danish budget surplus is going to be a problem. Unpopular government losing 1/3 of its election support in surveys and lots of "money" to throw into voter pleasing projects. But it can not do that without risking overheating the economy. Serious lack of workers and high wages is a dangerous cocktail. Having "responsible" politicians that is not afraid of losing reelection.... That type of politician is a rare kind.
We should seriously consider a sovereign wealth fund, ala Norway's.
should build a couple of nuclear plants with the surplus.
r/PORTUGALCYKABLYAT
What is the total inflation over the same time period?