Economy of The European Union - Economic Growth

Economic Growth

The EU's share of Gross world product (GWP) is stable at around one fifth.

The twelve new member states of the European Union have enjoyed a higher average percentage growth rate than their elder members of the EU. Slovakia has the highest GDP growth in the period 2005-2011 among all countries of the European Union (See Tatra Tiger). Notably the Baltic states have achieved massive GDP growth, with Latvia topping 11%, close to China, the world leader at 9% on average for the past 25 years (though these gains have been in great part cancelled by the late-2000's recession).

Reasons for this massive growth include government commitments to stable monetary policy, export-oriented trade policies, low flat-tax rates and the utilisation of relatively cheap labour. For the last year (2011), Estonia had the highest GDP growth from all the states in EU (7,6%). The current map of EU growth is one of huge regional variation, with the larger economies suffering from stagnant growth and the new nations enjoying sustained, robust economic growth.

Although EU27 GDP is on the increase, the percentage of Gross world product is decreasing due to the emergence of economic powers such as China, India and Brazil. In the medium to long term, the EU will be looking forward to increase GDP growth in Italy and the UK in order to stabilise growth in European Union states. This is to ensure sustained economic prosperity.

EU Member States GDP growth rates
Member State % GDP Growth
Austria 2.4 3.7 3.7 1.4 −3.8 2.1 2.7 13,2
Belgium 1.7 2.7 2.9 1.0 −2.8 2.4 1.8 9,9
Bulgaria 6.4 6.5 6.4 6.2 −5.5 0.4 1.7 23,6
Cyprus 3.9 4.1 5.1 3.6 −1.9 1.1 0.5 17,4
Czech Republic 6.8 7.0 5.7 3.1 −4.5 2.5 1.9 24,0
Denmark 2.4 3.4 1.6 −0.8 −5.8 1.3 0.8 2,6
Estonia 8.9 10.1 7.5 -4.2 −14.1 3.3 8.3 17,1
Finland 2.9 4.4 5.3 0.3 -8.5 3.3 2.7 10,9
France 1.9 2.7 2.3 -0.1 −3.1 1.7 1.7 8,1
Germany 0.7 3.7 3.3 1.1 −5.1 4.2 3.0 10,9
Greece 2.3 5.5 3.5 -0.2 -3.1 -4.9 -7.1 -3.4
Hungary 4.0 3.9 0.1 0.9 −6.8 1.3 1.6 4,7
Ireland 5.9 5.4 5.4 -2.1 −5.5 -0.8 1.4 5,5
Italy 0.9 2.2 1.7 −1.2 −5.5 1.8 0.4 0,0
Latvia 10.1 11.2 9.6 −3.3 -17.7 −0.9 5.5 12,3
Lithuania 7.8 7.8 9.8 2.9 −14.8 1.5 5.9 20,1
Luxembourg 5.3 4.9 6.6 -0.7 −4.1 2.9 1.7 17,5
Malta 3.7 3.2 4.6 4.0 −2.4 3.4 1.9 18,1
Netherlands 2.0 3.4 3.9 1.8 −3.7 1.6 1.0 10,8
Poland 3.6 6.2 6.8 5.1 1.6 3.9 4.3 36,0
Portugal 0.8 1.4 2.4 0.0 −2.9 1.4 -1.7 1,4
Romania 4.2 7.9 6.3 7.3 −6.6 -1.6 2.5 20,8
Spain 3.6 4.1 3.5 0.9 −3.7 −0.3 0.4 8,6
Slovakia 6.7 8.3 10.5 5.8 −4.9 4.4 3.2 38,3
Slovenia 4.0 5.8 7.0 3.4 −7.8 1.2 0.6 13,5
Sweden 3.2 4.3 3.3 −0.6 −5.0 6.6 3.9 15,9
United Kingdom 2.8 2.6 3.6 −1.0 −4.0 1.8 0.9 5,4
European Union 2.1 3.3 3.2 0.3 −4.3 2.1 1.5 8,2
Eurozone 1.7 3.2 3.0 0.4 −4.4 2.0 1.4 7,5

Read more about this topic:  Economy Of The European Union

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