Leaders and laggards have swapped places. Some EU countries that used to lag behind, including Spain, Portugal, and Greece, are now shining stars. They are among the fastest-growing economies in the eurozone, producing high-quality goods with clean energy.
After a long crisis and deep recession, these three nations have stunned analysts by becoming regional leaders. Their growth rates now double the eurozone average. In 2024, Spain and Greece are projected to expand by 2%, while the entire eurozone averages just 0.8%. Meanwhile, Germany, the so-called "engine" of the region, will barely grow.
Experts note that Southern Europe has dispelled the myth of a lazy population, an unproductive economy, and dependence on handouts from wealthy Northern Europe. Many analysts highlight the success in the agricultural sector of these former underperformers. Positive changes are also evident in other industries.
However, these countries are still struggling with low living standards. According to Eurostat, the minimum wage in both Portugal and Greece is less than 1,000 euros per month. This unresolved issue may lead to voter dissatisfaction, as seen in recent European Parliament elections. Delaying the solution to low living standards creates political risks and threatens regional stability, experts warn.
Greece currently faces no financial uncertainty from its debt crisis. In 2023, the country regained its investment rating, and its debt-to-GDP ratio fell to the lowest level in a decade. A highlight for Greece is the construction of Europe's "smart city," Ellinikon, near Athens, which is expected to boost GDP by 2.5 percentage points and create around 80,000 new jobs.
Portugal has seen a reduction in public debt in recent years. After a deep recession, record-high unemployment is gradually decreasing, which is very favorable for investors. Italy, however, is trailing behind its southern European neighbors with less financial progress. Despite this, Italian authorities remain optimistic and are determined to catch up with their eurozone peers.
